(THE NEWSMAN OF INDIA.COM)
Mumbai, February 14, 2025 – In a significant move, the Reserve Bank of India (RBI) has superseded the Board of Directors of New India Cooperative Bank Ltd., Mumbai, citing concerns over poor governance standards. The supersession will last for 12 months, as per the powers granted under Section 36 AAA in conjunction with Section 56 of the Banking Regulation Act, 1949, as applicable to cooperative societies.

As part of the restructuring process, the RBI has appointed Shreekant, the former Chief General Manager of State Bank of India (SBI), as the ‘Administrator’ to oversee the management of the bank’s affairs during this period. Additionally, a Committee of Advisors has been set up to assist the Administrator in fulfilling his duties. The committee consists of Ravindra Sapra, former General Manager of SBI, and Shri Abhijeet Deshmukh, a Chartered Accountant.

The RBI’s decision comes in response to material concerns related to governance issues observed at the bank. In a related announcement, the central bank drew attention to a press release dated February 13, 2025, which revealed that specific directions have been issued to the bank under Section 35 A of the Banking Regulation Act, 1949.

This action by the RBI is part of ongoing efforts to maintain financial stability and ensure adherence to high standards of governance within India’s banking sector.