Belagavi: The cooperative sector in Belagavi district is likely to witness significant changes following the implementation of the Centre’s new “cooling-off” rule, which bars directors from serving more than 10 consecutive years on the same cooperative bank board.
Source : https://timesofindia.indiatimes.com/city/hubballi/centres-cooling-off-rule-set-to-shake-up-belagavi-cooperative-scene/articleshow/131537571.cms
The provision, introduced through the Banking Laws (Amendment) Act, 2025, amends the Banking Regulation Act, 1949, and limits the continuous tenure of cooperative bank directors to 10 years. Directors exceeding this limit will be classified as “ineligible directors” and must undergo a mandatory three-year cooling-off period.
As per the Reserve Bank of India (RBI) guidelines, such directors cannot be associated with the same bank in any capacity during the cooling-off period, except as ordinary customers. However, they may serve on the boards of other cooperative banks, subject to eligibility norms.
The move is expected to have a major impact in Belagavi, a cooperative hub with more than 4,000 credit societies, many of which have been led by the same individuals for decades.
The Belagavi District Central Cooperative (BDCC) Bank is among the institutions likely to be affected. Around five senior directors, including BDCC chairman Annasaheb Jolle and MLA Laxman Savadi, have reportedly crossed the 10-year tenure limit.
Meanwhile, whistleblower Basavaraj Kurer has sought strict enforcement of the new rule at BDCC Bank and submitted a representation to the RBI. The complaint has been forwarded to NABARD and the Registrar of Cooperative Societies in Bengaluru for further action.
Kurer alleged that despite directions being issued nearly two weeks ago, no action has been taken and claimed political pressure is delaying implementation. He has warned of escalating the matter if authorities fail to act promptly.
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