RBI Intervenes in Co-operative Banks Amid Governance Concerns

The Reserve Bank of India (RBI) has overridden the Board of Directors of the Irinjalakuda Town Co-operative Bank due to poor financial performance and governance issues. Raju S Nair is appointed as Administrator. Similar restrictions are placed on other banks due to liquidity concerns.

The Reserve Bank of India (RBI) has taken bold action by replacing the Board of Directors at Irinjalakuda Town Co-operative Bank, citing persistent financial distress and governance issues.

This move comes with a one-year tenure for the appointed Administrator, Raju S Nair, a former Vice President at Federal Bank, who will steer the bank's operations during this period. In support, a Committee of Advisors, featuring experienced figures like Mohanan K and TA Mohamed Sageer, will assist in overseeing the bank's recovery.

With previous restrictions already affecting Irinjalakuda, Samarth Urban Co-operative Bank Ltd., and Samarth Sahakari Bank due to liquidity issues, the RBI aims to stabilize these financial institutions in the face of difficulty.

(With inputs from agencies.)