The Central Government has amended the Banking Regulation (Co-operative Societies) Rules 1966, to strengthen governance in co-operative banks by introducing new definitions, procedures, and revised compliance forms. The amendments insert a statutory definition of “ineligible director” to clearly identify directors who fail to meet prescribed eligibility norms. A new Rule 5-A sets out a structured, rule-based mechanism for determining removal or cessation of directors, including tenure-based grouping and drawing of lots where required.
