HC issues notices to Centre, RBI
The Hindu
Amendments to Banking Regulation Act
The Kerala High Court on Thursday issued notices to the Centre and the Reserve Bank of India (RBI) on a writ petition challenging the amendments to the Banking Regulation Act which have brought the urban cooperative banks under the direct supervision of the RBI and made applicable to them the governance norms of commercial banks.
The petition was filed by Thiruvalla East Cooperative Bank Ltd. and Guruvayur Cooperative Urban Bank. The petitioner said the urban cooperative banks were now forced to constitute a board of management and appoint a CEO/managing director which would function as a parallel power centre along with the board of directors elected by the general body of the cooperative societies.
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