New Delhi, Sept. 9 -- The Supreme Court has held that the Reserve Bank of India (RBI) can supersede the Board of Directors (BoD) of a multi-State co-operative bank and extend the period of supersession from time to time, subject to an overall limit of five years.

A Bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe dismissed appeals challenging a November 18, 2024 judgment of the Bombay High Court, which had upheld the RBI's decision to supersede the Board of Abhyudaya Co-operative Bank and appoint an Administrator.

The RBI had superseded the bank's Board on November 24, 2023 for one year, citing deteriorating financial health and the need to protect depositors, prevent further deterioration and ensure professional management...