RBI orders removal of Maharashtra minister from Latur bank board over tenure limit

The action follows a complaint alleging that Patil and seven other directors had exceeded the permissible tenure under the Banking Regulation Act. While the other seven directors resigned after the RBI sought their responses, Patil continued in office. He has rejected the RBI’s decision as “improper” and said he would challenge it before the high court.

The RBI action is being seen as a major embarrassment for the Mahayuti government, with Patil, an NCP minister, overseeing the politically powerful cooperative sector.

The action could have wider implications for Maharashtra’s district cooperative banking sector, where local politicians have held sway over bank boards for decades. In Patil’s case, the RBI order notes that he has held the post of director for more than 39 years.