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RBI Supersedes Abhyudaya Co-Operative Bank Board, Appoints Administrator

"The above action is necessitated due to certain material concerns emanating from poor governance standards observed in the bank," RBI said

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The Reserve Bank of India (RBI) replaced Abhyudaya Co-operative Bank's Board of Directors for a year on Friday, citing poor governance standards. Satya Prakash Pathak, former chief general manager of State Bank of India (SBI), was appointed as 'administrator' to manage the bank's affairs during this period by the regulator.

"The above action is necessitated due to certain material concerns emanating from poor governance standards observed in the bank," the Reserve Bank of India said.

The RBI has also formed an advisory committee to assist the administrator in carrying out his responsibilities. Venkatesh Hegde, former General Manager of SBI, Mahendra Chhajed, Chartered Accountant and Suhas Gokhale, former Managing Director (MD) of COSMOS Co-operative Bank, are members of the committee.

The RBI stated that it has not imposed any restrictions on the bank's operations and that it will continue to carry out its normal banking operations under the supervision of the administrator.



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