RBI extends Abhyudaya Co-operative Bank board supersession for another year

The Reserve Bank of India announced on Tuesday that it has extended the supersession of Abhyudaya Co-operative Bank's board of directors for a further 12 months, effective from November 24, 2026. The decision keeps the bank under central bank administration as it navigates operational and governance challenges.

Satya Prakash Pathak will remain in his position as administrator, continuing to discharge the functions and powers vested in the board during the extended supersession period. The RBI had initially imposed supersession on the bank's board to address governance concerns and ensure regulatory compliance.

Abhyudaya Co-operative Bank, a scheduled urban co-operative bank, operates across multiple states and serves a significant customer base. The RBI's continued oversight reflects the central bank's commitment to maintaining stability and depositor confidence in the cooperative banking sector.

The extension underscores the RBI's regulatory approach toward troubled cooperative banks, balancing immediate supervisory intervention with the need for institutional restructuring. The supersession mechanism allows the central bank to assume direct administrative control when it deems the existing board unable to manage the bank's affairs effectively.