RBI Removes Maharashtra Minister Babasaheb Patil From Latur Bank Board

The action followed a complaint by bank member Satish Jadhav, who alleged that eight of the bank’s 19 directors had served for more than 10 years and were, therefore, ineligible to continue. Jadhav later approached the Aurangabad bench of the Bombay High Court, which directed the authorities on August 3 to decide the matter within six weeks.

Seven of the eight directors subsequently resigned, while Patil continued in office. Patil has termed the RBI action “wrong and improper” and said he plans to challenge the decision before the High Court.

Under the Banking Regulation Act, 1949, as amended by the Banking Laws (Amendment) Act, 2025, directors of District Central Cooperative Banks (DCCBs) have a maximum tenure of 10 years. RBI Assistant General Manager Kapil Goswami issued the order on Friday.

Officials said the Banking Regulation Act has been applicable to cooperative banks since 2021 and was amended again in 2025. Under the latest amendment, persons who had completed 10 years as directors as of August 1, 2025, cannot continue in the position. However, the Act does not clearly specify whether the provision has retrospective or prospective effect.

Earlier, State Cooperation Department Deputy Secretary Sudhir Amrite had written to the Cooperation Commissioner, Pune, seeking action against DCCB directors who had completed more than 10 years in office.

According to officials, Jadhav submitted a complaint to the RBI Chief General Manager seeking the disqualification of eight directors of the Latur District Central Cooperative Bank on the same grounds. Copies of the complaint were also submitted to the Divisional Joint Registrar of Cooperative Societies, Latur Division, the Cooperation Commissioner and the NABARD section of the RBI.

After the RBI failed to act on the complaint, Jadhav approached the Bombay High Court on June 21. On August 3, the court directed the RBI to decide on his May 25 complaint within six weeks.

Patil, who is also a senior NCP leader, said the RBI introduced the 10-year tenure limit for directors of cooperative banks in 2021. However, he said the Maharashtra government has not amended its cooperative laws accordingly and, therefore, argued that the provision does not apply in the state.

“I have written to the RBI asking under which rule I have been removed as a director,” he said.

Patil further argued that if the tenure limit was introduced in 2021, a director completing a 10-year tenure under the provision would do so only in 2031.

“I have completed only three years under the rule, and seven more years would be completed in 2031,” he said.