5 hrs ago
RBI Removes Maharashtra Minister From Latur Bank Board
The Reserve Bank of India removed Minister Babasaheb Patil from a cooperative bank’s board.
A bank member said several directors had served longer than the allowed 10 years.
The complaint eventually reached the Bombay High Court.
The court told officials to decide the complaint within six weeks.
Seven directors resigned after the complaint, but Patil stayed on the board.
The RBI then ordered his removal on Friday.
Patil says the decision is wrong and plans to challenge it.
He also says Maharashtra’s cooperative laws were not changed to match the banking rule.
The Reserve Bank of India removed Maharashtra Cooperation Minister Babasaheb Patil from the Latur District Central Cooperative Bank board.
The action followed a complaint alleging that eight of the bank’s 19 directors had exceeded the 10-year tenure limit.
Seven of the eight directors resigned, while Patil remained until the RBI issued its order on Friday.
The Bombay High Court had directed authorities on August 3 to decide the complaint within six weeks.
Patil called the removal wrong and improper and said he would challenge it before the High Court.
- Who
- The Reserve Bank of India removed Maharashtra Cooperation Minister Babasaheb Patil after a complaint by bank member Satish Jadhav.
- What
- Patil was removed from the board of the Latur District Central Cooperative Bank over alleged violation of the 10-year director-tenure limit.
- Where
- The action concerns the Latur District Central Cooperative Bank in Maharashtra and proceedings before the Aurangabad bench of the Bombay High Court.
- When
- The RBI issued the removal order on Friday; the Bombay High Court had directed a decision on August 3 within six weeks.
- Why
- The RBI said the action followed rules limiting District Central Cooperative Bank directors to a maximum 10-year tenure.
RBI and Complainant's Position
Patil's Position
Tenure limit
RBI and Complainant's Position
The complaint alleged that eight directors had exceeded the 10-year limit, and the RBI removed Patil after considering the matter.
Patil's Position
Patil says he has completed only three years under the relevant rule and argues that seven more years would run until 2031.
Applicability of the rule
RBI and Complainant's Position
Officials cited the Banking Regulation Act and its 2025 amendment, under which people who had completed 10 years by August 1, 2025, could not continue as directors.
Patil's Position
Patil argues that Maharashtra had not amended its cooperative laws after the 2021 provision and says the tenure rule therefore does not apply in the State.
Challenge to the removal
RBI and Complainant's Position
The RBI acted after the Bombay High Court directed authorities to decide Jadhav's complaint within six weeks.
Patil's Position
Patil has called the RBI action wrong and improper, asked which rule justified his removal, and plans to challenge it before the High Court.
Key facts
- Bank
- Latur District Central Cooperative Bank
- Removed director
- Babasaheb Patil, Maharashtra Cooperation Minister
- Regulator
- Reserve Bank of India
- Complaint
- Satish Jadhav alleged that eight of 19 directors had served more than 10 years.
- Court direction
- The Aurangabad bench of the Bombay High Court ordered authorities on August 3 to decide the matter within six weeks.
- Relevant law
- The Banking Regulation Act, 1949, as amended by the Banking Laws (Amendment) Act, 2025.
- Other resignations
- Seven of the eight directors named in the complaint subsequently resigned.
Quotes
Babasaheb Patil
Maharashtra Cooperation Minister and senior NCP leader
“If the rule was introduced in 2021, a director completing a 10-year tenure would do so only in 2031. I have completed only three years under the rule, and seven more years would be completed in 2031.”
deccanchronicle.com
“I have written to the RBI asking under which rule I have been removed as a director.”
deccanchronicle.com
Sources
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