RBI Supersedes Board of New India Cooperative Bank, Appoints Administrator

Mumbai: The Reserve Bank of India (RBI) has superseded the Board of Directors of New India Cooperative Bank Ltd., Mumbai, for a period of 12 months, citing concerns over poor governance standards. The action, taken under Section 36AAA read with Section 56 of the Banking Regulation Act, 1949 (as applicable to co-operative societies), comes in response to what the central bank described as “material concerns” regarding the bank’s management.

In a statement issued on Thursday, the RBI announced the appointment of Shri Shreekant, a former Chief General Manager of the State Bank of India (SBI), as the Administrator to oversee the bank’s operations during this period. Additionally, a Committee of Advisors has been constituted to assist the Administrator in his duties. The committee comprises Shri Ravindra Sapra, former General Manager of SBI, and Shri Abhijeet Deshmukh, a Chartered Accountant.

“The action has been necessitated due to certain material concerns emanating from poor governance standards observed in the bank,” the RBI said in its release.

Alongside the board’s supersession, the central bank has also issued certain directions to the bank under Section 35A(1) of the Banking Regulation Act, 1949, read with Section 56 of the same Act. These directions are aimed at safeguarding the interests of depositors and ensuring the stability of the institution.

The RBI’s decision follows an earlier press release (2024-2025/2154) dated February 13, 2025, which highlighted governance-related issues and regulatory interventions in the bank’s affairs. The cooperative banking sector, which serves millions across India, has been under increased scrutiny following multiple governance lapses reported in recent years.

The New India Cooperative Bank Ltd., with its headquarters in Mumbai, primarily serves customers in the cooperative and retail banking segments. The bank is now expected to work closely with the Administrator and the Committee of Advisors to implement necessary reforms and restore its governance framework.

Depositors and stakeholders will be closely monitoring developments, as cooperative banks have traditionally played a critical role in financial inclusion, especially in semi-urban and rural areas. The RBI assured the public that it remains committed to ensuring the stability and resilience of the banking system while taking necessary steps to address governance deficiencies.

Further updates on the bank’s operations and regulatory interventions will be shared through official RBI communications.