Urban Cooperative Bank Directors Serving Over 10 Years to Be Disqualified Under New Banking Law

Urban cooperative bank directors who have completed more than 10 consecutive years on the board will now be disqualified from contesting upcoming elections, as per the Banking Laws

Pune | March 26, 2026: A major change in Maharashtra’s cooperative banking sector is expected to reshape upcoming elections, as directors of urban cooperative banks who have served continuously for more than 10 years will now be declared ineligible to contest further. The move comes under the Banking Laws (Amendment) Act, 2025, which introduces stricter eligibility norms to prevent long-term dominance by the same individuals in bank management.

According to cooperative election authorities, the reform is not limited to district central cooperative banks but will also apply to urban cooperative banks. This is expected to lead to a significant leadership reshuffle, with estimates suggesting that nearly 40 to 50 per cent of directors in many banks could be replaced through fresh elections. Sources said the rule has already been implemented in elections held for five multi-state urban cooperative banks in Maharashtra. Now, the same provisions are expected to be enforced during upcoming elections in several other cooperative banks across the state.

Officials revealed that around 550 urban cooperative banks operate in Maharashtra, and by December 2026, at least 20 urban cooperative banks are likely to face elections where this disqualification rule will be applied. These include banks located in Mumbai, Thane, Dhule, Kolhapur, Satara, Sangli, Dharashiv, Amravati and Washim. In addition, the rule is also expected to affect salary-earners’ cooperative banks in districts such as Dhule, Kolhapur, Beed and Washim, bringing the total number of affected banks to 20 in the first phase.

The cooperative department has already communicated the amendment details to the Cooperative Commissioner, directing authorities to ensure compliance during election processes. The State Cooperative Election Authority has also instructed district election officers to take note of the revised provisions under Section 10A (2A)(i) of the Banking Regulation Act, 1949. The reform is being seen as an attempt to improve transparency, accountability and democratic functioning in cooperative banking institutions.

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