RBI Orders Removal of Maharashtra Minister Babasaheb Patil, 7 Directors From Latur DCC Bank

The Reserve Bank of India (RBI) has ordered the removal of Maharashtra Cooperation Minister Babasaheb Patil and seven other directors of the Latur District Central Cooperative Bank for exceeding the 10-year tenure limit, according to an order issued by the central bank.

Patil belongs to the Nationalist Congress Party (NCP) led by Deputy Chief Minister Sunetra Pawar. The RBI action followed directions of the Aurangabad bench of the Bombay High Court on a petition filed by bank member Satish Sheshrao Jadhav.

RBI Assistant General Manager Kapil Goswami issued the order on Friday.

Under the Banking Regulation Act, 1949, as amended by the Banking Laws (Amendment) Act, 2025, directors of District Central Cooperative Banks (DCCBs) or Central Cooperative Banks have a maximum tenure of 10 years.

The matter arose after State Cooperation Department Deputy Secretary Sudhir Amrite wrote to the Cooperation Commissioner, Pune, seeking action against DCCB directors who had completed more than 10 years in office.

Jadhav submitted a complaint to the RBI’s Chief General Manager on May 25, 2026, seeking disqualification of eight directors of the Latur DCC Bank on the same ground. He also submitted copies of the complaint to the Divisional Joint Registrar, Cooperative Societies, Latur Division, the Cooperation Commissioner and the NABARD section of the RBI.

After the RBI did not act on the complaint, Jadhav approached the Bombay High Court on June 21. On August 3, the court directed the RBI to take action on his May 25 complaint within six weeks.

The central bank on September 4 asked the concerned directors to submit their responses by September 10.

Seven directors Ashok Shivajirao Patil Nilangekar, Shripatrao Nivruttirao Kakade, Swayamprabha Dhananjay Patil, Vyankatrao Dhondiram Birajdar, Prithviraj Harishchandra Shirsat, Pramod Jadhav and Nagorao Patil submitted their resignations to the bank’s chairman and Managing Director Hanumant Jadhav on September 10.

The bank’s executive director approved the resignations and forwarded them to the RBI General Manager.

On September 18, the RBI directed the Latur DCC Bank to remove the director found ineligible under Section 10A(2A)(i), read with Section 56 of the Banking Regulation Act, 1949.