Reserve Bank of India(RBI) issued a press release on November 24, that announced that RBI has taken charge of Abhyudaya Cooperative Bank Ltd., replacing its Board of Directors for a period of 12 months.
Abhyudaya Cooperative Bank Ltd, headquartered in Maharashtra, India, is a multi-state cooperative banking institution that has been functioning as a cooperative bank since its establishing in the year 1965.
Shri Satya Prakash Pathak, the former Chief General Manager of State Bank of India, has been appointed as the Administrator to overlook the bank’s operations during the course of 12 months. To help the Administrator, a “Committee of Advisors” has been formed, including Shri Venkatesh Hegde, Shri Mahendra Chhajed, and Shri Suhas Gokhale.
This action comes in response to concerns about poor governance standards in the bank. While no business restrictions have been imposed, the Reserve Bank aims to ensure smooth banking activities under the guidance of the Administrator.
