Team Blitz India
NEW DELHI: The Reserve Bank of India (RBI)superseded Board of Mumbai-based Abhyudaya Cooperative Bank for 12 months due to material concerns.
The banking regulator has appointed Satya Prakash Pathak, former Chief General Manager of State Bank of India, as administrator to manage the affairs of the Mumbai-based bank during this period. RBI has also appointed a committee of advisors to assist the Administrator to discharge his duties.
The members of this committee are are Venkatesh Hegde (former General Manager, SBI), Mahendra Chhajed (Chartered Accountant) and Suhas Gokhale (former MD, COSMOS Co-operative Bank Limited).
RBI said it had to take the action ‘due to certain material concerns emanating from poor governance standards.’ In October, RBI had clarified that it did not revoke the lender’s licence.