RBI superseded Board of Directors of New India Cooperative Bank
The Reserve Bank of India (RBI) has taken a decision, where the Board of Directors of New India Cooperative Bank Limited superseded.
In a press release dated 14th Feb 2025, it is said, “In exercise of the powers conferred under Section 36 AAA read with section 56 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies), the Reserve Bank has today superseded the Board of Directors of New India Cooperative Bank Limited situated in Mumbai, for a period of 12 months.”
Action Taken by RBI
As a result, the RBI has appointed Shri Shreekant, former Chief General Manager of the State Bank of India (SBI), as ‘Administrator’ to manage the bank’s affairs during this period.
The RBI (Reserve Bank of India) has also appointed a ‘Committee of Advisors’ to help the Administrator in discharging his duties. Shri Ravindra Sapra (former General Manager, SBI) and Shri Abhijeet Deshmukh (Chartered Accountant) are the members of the Committee of Advisors.
The above action by RBI is needed due to significant concerns arising from the inadequate governance standards found in the bank. RBI issued certain directions to this bank, under sub-section (1) of Section 35 A of the Banking Regulation Act, 1949.
