Banking Law

Cooperative Bank Tenure Extension Ignites Political Storm in Gujarat

A recent amendment to the Banking Regulation Act, 1949, extending the maximum continuous tenure for cooperative bank directors from eight to ten years, has plunged Gujarat into a significant political controversy. Effective August 1, this change effectively grants a two-year reprieve to hundreds of long-serving board members across District Central, State, and Urban Cooperative Banks in the state, many of whom had already exceeded the previous limit. Rajya Sabha MP Shakti Sinh Gohil initiated a strong attack, questioning the timing and implications of the amendment, which critics argue undermines accountability and good governance within the cooperative banking sector. [5]