The Reserve Bank of India (RBI) has invoked its powers under Section 36AAA read with Section 56 of the Banking Regulation Act, 1949 (as applicable to cooperative societies) to supersede the Board of Directors of New India Cooperative Bank Ltd., Mumbai for a period of 12 months.
The central bank has appointed Shreekant, former Chief General Manager of State Bank of India (SBI), as the Administrator to oversee the bank’s operations during this period. Additionally, a Committee of Advisors has been constituted to assist the Administrator in managing the bank’s affairs. The appointed members of the committee are Ravindra Sapra, former General Manager of SBI, and Abhijeet Deshmukh, a Chartered Accountant.
RBI stated that this action was necessary due to poor governance standards observed at the bank, which raised material concerns regarding its operations. The central bank also referenced Press Release 2024-2025/2154, dated February 13, 2025, issued on its official website, which indicated that certain regulatory directions had already been imposed on the bank under Section 35A of the Banking Regulation Act, 1949.
This regulatory intervention aims to safeguard the bank’s financial stability and protect depositors’ interests. The RBI’s decision comes amid increased scrutiny of governance practices in cooperative banks, ensuring compliance with prudent banking norms.
