RBI removes Maharashtra cooperation minister, 7 others from bank board

The Reserve Bank of India (RBI) has directed the immediate removal of Maharashtra Cooperation Minister Babasaheb Patil and seven other directors of the Latur District Central Cooperative Bank for breaching the maximum tenure cap of ten years. RBI Assistant General Manager Kapil Goswami issued the order on Friday, enforcing provisions of the Banking Regulation Act, 1949, as amended by the Banking Laws (Amendment) Act, 2025.

Patil, who represents the Nationalist Congress Party (NCP) and serves in Deputy Chief Minister Sunetra Pawar's government, is among the officials affected by the directive. The central bank's action stems from directions issued by the Aurangabad bench of the Bombay High Court, which was hearing a petition filed by bank member Satish Sheshrao Jadhav challenging the extended tenures.

The RBI order addresses long-standing compliance issues at District Central Cooperative Banks (DCCBs) across Maharashtra. Earlier, the State Cooperation Department's Deputy Secretary Sudhir Amrite had written to the Cooperation Commissioner in Pune, urging action against directors of district central cooperative banks who had exceeded their permissible tenure limits, signalling growing regulatory scrutiny of cooperative bank governance.