MP HC stays RBI notification on UCBs

Jabalpur: The Madhya Pradesh High Court has stayed an RBI notification related to appointment and removal of managing directors and whole-time directors in Urban Cooperative Banks (UCBs) operating in states.

A division bench comprising Chief Justice Mohammad Rafiq and Justice VK Shukla, while hearing a petition, on Friday (September 3) stayed the RBI circular issued on June 25.

The HC has also issued notices to the RBI, the Centre and state governments on the petition filed by Bhopal-based Mahanagar Nagrik Sahkari Bank Maryadit, the petitioner bank's counsel, Ajay Gupta, said.

The court order said, Issue notice to the respondents on payment of PF (processing fee) within seven days returnable within eight weeks. In the meanwhile, operation and effect of the impugned order dated 25.06.2021 qua ((with regard to) the petitioner shall remain stayed, the HC said.

The Bhopal-based urban cooperative bank has challenged the constitutional validity of the RBI notification. Gupta said the RBI's order has regulated appointment, re-appointment and removal of managing directors (MDs) and whole-time directors (WTD) of UCBs.