- RBI removed Maharashtra minister Babasaheb Patil from Latur DCC Bank.
- Removal due to alleged violation of 10-year director tenure limit.
- Patil plans to challenge RBI's decision in the High Court.
Maharashtra: The Reserve Bank of India (RBI) on Saturday ordered the removal of Maharashtra Nationalist Congress Party (NCP) minister Babasaheb Patil from the board of directors of the Latur District Central Cooperative Bank over the alleged violation of the 10-year tenure limit.
News Alert! RBI orders removal of Maharashtra minister Babasaheb Patil as Latur DCC Bank Director for exceeding 10-year tenure limit on post. pic.twitter.com/jfyXyautH1
— Press Trust of India (@PTI_News) September 19, 2026
Under Sections 10A(2A)(i) and 56 of the Banking Regulation Act, 1949, any director of a cooperative bank who completes a continuous 10-year tenure on or after August 1, 2025, the date the relevant amendment came into force, becomes ineligible to remain in office.
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Background Of Complaint And High Court Intervention
Satish Sheshrao Jadhav, a member and authorised voter representative of the bank, filed a complaint with the RBI on May 25. Jadhav alleged that Patil was among 19 directors who had breached the 10-year tenure limit and sought their disqualification. He further demanded the appointment of an administrator and the cancellation of alleged illegal recruitments at the institution.
The matter subsequently reached the Aurangabad bench of the Bombay High Court. On August 3, the court directed the competent authority to decide Jadhav's complaint on its merits within six weeks.
Following the court's direction, seven of the eight directors named in the petition resigned. Patil, however, opted not to step down, prompting the RBI to order his removal before the six-week deadline expired.
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Patil To Challenge Removal In High Court
Patil has disputed the RBI's interpretation of the tenure rules and announced plans to challenge it in the High Court.
"The RBI’s decision is improper as we cannot be removed under that particular provision. Hence, I will challenge it before the High Court in my capacity as a bank director," Patil was quoted as saying.
(With Inputs From PTI)