The Reserve Bank of India (RBI) has announced the supersession of the Board of Directors of Irinjalakuda Town Co-operative Bank Ltd. for a period of 12 months, under the provisions of Section 36AAA read with Section 56 of the Banking Regulation Act, 1949 (as applicable to Co-operative Societies).

Following this decision, the RBI has appointed Shri Raju S. Nair, former Vice President of Federal Bank, as the Administrator to oversee and manage the bank’s operations during the supersession period.

To assist the Administrator, the central bank has also constituted a Committee of Advisors, comprising Shri Mohanan K, former Deputy General Manager of South Indian Bank, and Shri T. A. Mohamed Sageer, former Vice President of Federal Bank.

According to the RBI, the action was necessitated due to persistent financial weakness and governance issues observed in the bank. The regulator referred to its earlier press release (No. 2025-2026/807 dated July 30, 2025), which had informed the public about directions issued to the bank under Section 35A read with Section 56 of the Act, highlighting ongoing supervisory concerns.

The RBI’s intervention aims to safeguard depositor interests and ensure the stability of the bank’s operations under close regulatory oversight.