The Karnataka State Souharda Federal Cooperative Ltd. (KSSFCL) organised a one-day special training programme for presidents, vice-presidents, directors and chief executive officers of Souharda Cooperative Banks at Souharda Sahakari Soudha in Bengaluru, bringing together key stakeholders to deliberate on recent regulatory changes affecting the cooperative banking sector.
The programme was inaugurated by Dr. Suresh Gowda, Joint Registrar (Legal Division), Office of the Registrar of Cooperative Societies. Addressing participants, he lauded KSSFCL for conducting effective training and educational initiatives across Karnataka.
Referring to recent amendments to the Banking Regulation Act and a Reserve Bank of India (RBI) circular, Dr. Gowda highlighted the provision mandating a three-year cooling-off period for chairpersons of cooperative banks after completing ten years in office.
He noted that uncertainty remains over whether the ten-year tenure should be calculated retrospectively or from the date of the RBI order. According to him, a clear clarification from the RBI would enable both the Cooperative Department and KSSFCL to implement the guidelines uniformly.
He also informed participants that the Karnataka Chief Minister had already written to the Central Government on the issue. Emphasising the need to preserve the cooperative ethos, he remarked that regulatory directions should not adversely affect the spirit of cooperation.
Presiding over the workshop, KSSFCL President G. Nanjanagowda described the programme as a consultative exercise aimed at examining differing interpretations of the RBI circular and evolving a common understanding for the benefit of Souharda Cooperative Banks.
KSSFCL Managing Director Sharangouda Patil introduced the theme of the workshop, while Director Raghuram Reddy welcomed the participants.
RBI officer Shanthaprakash S. delivered a detailed presentation on corporate governance, regulatory compliance and RBI guidelines applicable to cooperative banks. A panel discussion on amendments to the Banking Regulation Act and the RBI circular dated May 25, 2026, followed, with Nanjanagowda chairing the session and Patil serving as moderator.
Former KSSFCL President Manohar Maski explained the implications of the RBI circular and urged banks not to panic, noting that the directive had been issued nationwide to strengthen governance and institutional growth.
He suggested that stakeholders first seek clarification before considering further action. Some participants, however, proposed that a group of banks jointly approach the High Court if required.
Vishwanath Hiremath, President of Vikas Souharda Cooperative Bank, called for a constructive response to RBI directives, while chartered accountant Madhukar Hegde stressed that compliance with statutory requirements was far less costly than the consequences of non-compliance.
The meeting resolved to submit a joint representation to the Central Government, seek follow-up action from the Chief Minister and explore legal remedies if necessary.
Thirty-seven representatives from 15 Souharda Cooperative Banks and two Urban Cooperative Banks participated in the programme. The event concluded with a vote of thanks and the felicitation of Dr. Suresh Gowda and RBI officer Shanthaprakash for their contributions.
