Case Brief
The Reserve Bank of India, acting under Section 36AAA read with Section 56 of the Banking Regulation Act, 1949 as applicable to co-operative societies, superseded the Board of Directors of Irinjalakuda Town Co-operative Bank Ltd. for a period of 12 months. RBI said the step was necessary because of material concerns linked to the bank’s continued poor financial condition and governance standards. During this period, Shri Raju S Nair has been appointed as Administrator, and a Committee of Advisors has also been appointed to assist him in managing the bank’s affairs.
Action Snapshot
- Primary Impact
- Board supersession
- Entity Type
- Co-operative bank
- Location
- Irinjalakuda, Kerala