RBI Orders Removal of Maharashtra Minister Babasaheb Patil and Seven Directors from Latur DCC Bank Board — September 19, 2026

The Reserve Bank of India (RBI) has ordered the disqualification and removal of Maharashtra Cooperation Minister Babasaheb Patil and seven other directors from the board of the Latur District Central Cooperative (DCC) Bank for breaching statutory limits governing board directorship tenures.

The regulatory directive, issued by RBI Assistant General Manager Kapil Goswami, follows strict statutory caps under Sections 10A(2A)(i) and 56 of the Banking Regulation Act, 1949. Under these provisions, any director of a cooperative bank who has served a continuous tenure exceeding 10 years is legally ineligible to remain in office.

Regulatory Intervention and High Court Mandate

The supervisory enforcement originated from a formal grievance submitted by Satish Sheshrao Jadhav, a member and authorised voter representative of the Latur DCC Bank. Jadhav filed a complaint with the central bank on May 25, alleging that the state cooperation minister and several other board members had far exceeded the 10-year continuous tenure ceiling and sought their disqualification.

The matter subsequently moved before the Aurangabad bench of the Bombay High Court. On August 3, the High Court directed the RBI to review and decide upon the merits of Jadhav's representation within a six-week timeline.

Directors Named in the Dispute:

• Babasaheb Patil
• Ashokrao Patil Nilangekar
• Shripatrao Kakade
• Swayamprabha Patil
• Vyankatrao Biradar
• Pruthviraj Shirsat
• Pramod Jadhav
• Nagorao R. Patil

Following the court's intervention and the raised objections, seven of the eight directors submitted their resignations from the board before the expiry of the deadline. Babasaheb Patil—who serves as a minister in Maharashtra and is a member of the Nationalist Congress Party (NCP)—refused to step down, prompting the banking regulator to mandate his removal directly.

Minister Contests Decision

Patil has disputed the regulator's stance and declared plans to challenge the order in the High Court. Terming the central bank’s enforcement as improper, Patil argued that the specific provisions under the amended banking legislation should not apply retrospectively or disqualify his current tenure.

Earlier, the Maharashtra State Cooperation Department had also noted the requirement, with Deputy Secretary Sudhir Amrite communicating to the Cooperation Commissioner in Pune regarding directors across district central cooperative banks who had crossed the 10-year threshold.

Significance for India's Banking Ecosystem

The RBI’s firm intervention in the Latur DCC Bank board underscores the regulator's unwavering focus on corporate governance across India's cooperative credit institutions. Cooperative and rural credit lenders handle vital lines of farm credit, crop finance, and retail deposits across semi-urban and agrarian belts.

By enforcing statutory tenure caps even against high-profile political figures, the central bank has reaffirmed that structural banking governance standards take precedence over regional political influence, reinforcing depositor protection and institutional accountability across state cooperative banking networks.

Tags: Reserve Bank of India Latur DCC Bank Banking Sector Cooperative Banks Banking Regulation Act