RBI Removes Maharashtra Minister Babasaheb Patil From Latur Bank Board Over Tenure Limit

September 19, 2026

Latur: The Reserve Bank of India (RBI) has ordered the removal of Maharashtra Cooperation Minister and NCP leader Babasaheb Patil from the Board of Directors of the Latur District Central Cooperative Bank (Latur DCC Bank) after he exceeded the prescribed 10-year tenure limit for directors.

The RBI issued the order on September 18 following directions from the Aurangabad Bench of the Bombay High Court on a complaint filed by bank member Satish Sheshrao Jadhav.

Complaint Alleged 10-Year Tenure Violation

Jadhav had filed a complaint with the RBI on May 25, 2026, seeking action against eight directors of the Latur DCC Bank, alleging that they had remained on the board for more than 10 years.

The matter subsequently reached the Bombay High Court. On August 3, the court directed the RBI to take action on Jadhav’s complaint within six weeks. The RBI later sought responses from the concerned directors.

Under amendments to the Banking Regulation Act, 1949, directors of District Central Cooperative Banks are subject to a maximum 10-year tenure.

Seven Directors Resign, Patil Faces RBI Order

Following the RBI’s proceedings, seven of the eight directors named in the complaint submitted their resignations on September 10. Their resignations were subsequently forwarded to the RBI.

Patil, however, did not resign. On September 18, the RBI directed the Latur DCC Bank to remove the director who was found ineligible to continue under the relevant provisions of the Banking Regulation Act.

Patil has indicated that he will challenge the RBI’s decision in court. Reports have quoted him as describing the removal as improper.

The Latur District Central Cooperative Bank is an important institution in Maharashtra’s rural credit system, particularly for agricultural lending and cooperative institutions.