The Banking Laws (Amendment) Act, 2025 is set to reshape leadership in District Central Cooperative Banks in Maharashtra, with several long-serving directors from the state’s influential sugar sector likely to become ineligible to contest upcoming bank elections.
The Cooperation, Marketing and Textiles Department directed the Commissioner and Registrar of Cooperative Societies to issue instructions to regional offices and district cooperative banks to enforce the amended rule regarding the tenure of bank directors.
The state government had earlier sought clarification from the Reserve Bank of India on the interpretation of the amended provision. The RBI said that under Section 10A(2A)(i) read with Section 56 of the Banking Regulation Act, 1949, any director of a cooperative bank who completes a continuous tenure of 10 years on or after August 1, 2025 will be ineligible to continue in office. The central bank also agreed with the interpretation put forward by the state government.
The directive is expected to have a wider impact on the cooperative sector in Maharashtra, where many district cooperative banks are closely linked to the sugar industry and are led by prominent sugar mill operators and political leaders.
Officials said the order could affect ongoing and upcoming elections in cooperative banks across the state. Elections to the Akola-Washim District Central Cooperative Bank are currently underway, and several senior leaders may become ineligible under the revised rules.
In Kolhapur district, senior political leaders and sugar mill operators including Hasan Mushrif, Satej Patil, Vinay Kore and Rajendra Patil Yadravkar are likely to be affected. Other leaders such as Nivedita Mane, Sanjay Mandlik, Rajesh Patil and Raju Awale may also face disqualification under the new rule.
However, several directors who were elected to the board for the first time will remain eligible to contest again. These include Amal Mahadik, Arjun Abitkar, Ranjit Patil, Rajesh P. N. Patil, Ranvirsingh Gaikwad, Vijaysingh Mane, Smita Gavali and Shrutika Katkar.
The term of the current board of the Kolhapur District Central Cooperative Bank will end in January 2027. The election process is expected to begin later this year, with voting likely to take place in December 2026.
