The Reserve Bank of India (RBI) has directed Latur District Central Cooperative Bank Ltd. (Latur DCCB) to remove a director who is ineligible to hold office under Section 10A(2A)(i) read with Section 56 of the Banking Regulation Act, 1949.
In a letter on Friday, addressed to complainant and former bank employee Satish Sheshrao Jadhav, the RBI said it had directed Latur DCCB on the same day to remove the director found ineligible under the law.
The action follows Jadhav’s representation dated May 25, 2026, in which he alleged that eight directors of the bank had exceeded the permissible tenure limit. The matter subsequently reached the Aurangabad Bench of the Bombay High Court, which on August 3 directed the RBI to consider the representation on its merits and take a decision within six weeks.
Following the court’s direction, the RBI sought responses from the eight directors. Seven of them subsequently resigned from the board, while Maharashtra Cooperation Minister Babasaheb Patil continued in office.
The RBI’s Friday communication to Jadhav does not name the director to whom its removal direction relates. It states only that Latur DCCB was directed to remove “the director who is ineligible to hold office” under the relevant provisions of the Banking Regulation Act.
Patil had opposed the application of the tenure restriction, arguing that it could not be applied retrospectively and that the existing board’s term was due to end on October 26, 2026.
The RBI rejected the argument that applying the provision to a continuing tenure would amount to retrospective application.
Patil has disputed the RBI’s interpretation and said he would challenge the decision before the Bombay High Court.
The RBI letter further states that the other two issues raised in Jadhav’s representation were forwarded to the Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra, for information and necessary action.
The RBI communication confirms the removal direction against the ineligible director, but does not state in this letter that all eight directors were found ineligible or ordered to be removed.
