The Ministry of Finance (MoF), on December 10, 2025, issued the Banking Regulation (Co-operative Societies) Amendment Rules, 2025, to further amend the Banking Regulation (Co-operative Societies) Rules, 1966.
The following has been stated namely:-
• In rule 2, after clause (a), the following clause shall be inserted, namely: - “(aa) “ineligible director” means a director who does not fulfil the requirements under clauses (a) and (b) of sub-section (2) of section 10-A of the Act.”;
• After rule 5, the following rule shall be inserted, namely: – “5-A. Manners of determination of drawing of lots of director or person who will cease to hold office or removed from the membership of Board of Directors. —
(1) The Board of directors shall ascertain the number of director or directors out of the ineligible directors, who have to cease to hold the office, for the purpose of reconstitution of the Board of directors under sub-section (3) of section 10-A of the Act, as per sub-rule (3) of these rules.
(2) The Reserve Bank shall ascertain the number of person or persons out of the ineligible directors, who are to be removed from the membership of Board of directors for the purpose of composition of the Board of directors in pursuance of sub-section (5) of section 10-A of the Act, as per sub-rule (3) of these rules.
(3) The name of the director or directors and person or persons, as the case may be, who shall be ceased to hold office or removed from the membership of Board of directors, as the case may be, under sub-rule (1) and (2) shall be determined by drawing of lots from among the ineligible directors or the persons, as the case may be.
[Notification no. G.S.R. 891(E)]
