Case Brief
The Reserve Bank of India superseded the Board of Directors of Abhyudaya Cooperative Bank Ltd., Mumbai, for a period of 12 months under Section 36AAA read with Section 56 of the Banking Regulation Act, 1949. RBI said the step was prompted by material concerns arising from poor governance standards observed in the bank. It appointed Shri Satya Prakash Pathak as Administrator and constituted a Committee of Advisors to assist him. RBI also clarified that no business restrictions were imposed and the bank would continue normal banking activities under the Administrator’s guidance.
Action Snapshot
- Primary Impact
- Board supersession
- Entity Type
- Co-operative bank
- Location
- Mumbai, Maharashtra