Archive · 20 Sep 2026
RBI Removes Maharashtra Minister From Latur Bank Board
The Reserve Bank of India removed Maharashtra minister Babasaheb Patil from a cooperative bank’s board.
A bank member named Satish Jadhav complained that eight directors had served longer than 10 years.
Seven of those directors later resigned.
Patil stayed on the board, so the RBI issued an order removing him.
The Bombay High Court had told officials to decide the complaint within six weeks.
The rule comes from the Banking Regulation Act and its 2025 amendment.
Officials said it is unclear whether the rule applies to past service or only future service.
Patil says Maharashtra did not change its own cooperative laws to match the rule.
He says his removal was improper and plans to challenge it in court.
The Reserve Bank of India removed Maharashtra Cooperation Minister Babasaheb Patil from the Latur District Central Cooperative Bank board.
Bank member Satish Jadhav alleged that eight of the bank’s 19 directors had exceeded the 10-year tenure limit.
Seven of the eight directors resigned, but Patil remained on the board until the RBI issued its order on Friday.
The Aurangabad bench of the Bombay High Court directed the RBI on August 3 to decide Jadhav’s complaint within six weeks.
Patil called the action wrong and improper, arguing that Maharashtra’s laws were not amended and saying he would challenge the removal.
- 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 an alleged breach of the 10-year director-tenure limit.
- When
- The RBI issued the order on Friday; the Bombay High Court directed the RBI on August 3 to decide the complaint within six weeks.
- Where
- The action concerns the Latur District Central Cooperative Bank in Maharashtra and proceedings before the Aurangabad bench of the Bombay High Court.
- Why
- The RBI action followed allegations that directors had exceeded the maximum 10-year tenure allowed under the Banking Regulation Act and its 2025 amendment.
RBI and Complainant’s Position
Patil’s Position
Tenure limit
RBI and Complainant’s Position
Jadhav alleged that eight directors had exceeded the 10-year limit, and the RBI removed Patil after the complaint and court direction.
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 has not amended its cooperative laws to reflect the rule and says the provision therefore does not apply in the state.
Legal interpretation
RBI and Complainant’s Position
Officials acknowledge that it is unclear whether the amended tenure provision applies retrospectively or prospectively.
Patil’s Position
Patil questions which rule authorized his removal and says he plans to challenge the decision before the High Court.
- 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 the bank’s 19 directors had served for more than 10 years.
- Court direction
- The Aurangabad bench of the Bombay High Court directed the RBI on August 3 to decide the complaint 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.
