AHMEDABAD: A key amendment to Section 10A(2a)(i) of the Banking Regulation Act, 1949, has extended the maximum continuous tenure of directors in cooperative banks, excluding chairpersons and whole-time directors, from eight to ten years, effective 1 August 2025. Rajya Sabha data reveals that, in Gujarat alone, 169 directors of District Central and State Cooperative Banks have already crossed the eight-year mark, along with 876 directors in Urban Cooperative Banks. The change effectively gives these long-serving board members a two-year extension to retain their seats.Rajya Sabha MP Shakti Sinh Gohil opened the attack by invoking the Banking Regulation Act’s earlier provision that barred directors from serving more than eight consecutive years. He pressed the government for specifics, how many cooperative banks in Gujarat were allegedly flouting this limit, how many directors were involved, and where they were posted.The Finance Ministry’s reply revealed a legislative twist that instantly altered the debate. It confirmed that Section 10A(2a)(i) of the Act has recently been amended to extend the maximum continuous tenure for cooperative bank directors, excluding chairpersons and whole-time directors, from eight to ten years. The amendment will take effect on 1 August 2025, effectively giving overstay directors a two-year reprieve.
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