In terms of section 10B(1A)(ii) of B R Act,1949(AACS) the management of the whole of the affairs of a co-operative bank shall be entrusted to a Managing Director who shall exercise his powers subject to the superintendence, control and direction of the board of Directors.
Para 3.1 of the direction on appointment of MD in UCBs states as follows
Managing Director, who may also be designated as Chief Executive Officer or by any other name, is a person who is entrusted with the management of the whole, or substantially the whole of the affairs of a UCB, subject to the regulations or directions issued by the Reserve Bank from time to time. MD shall function under the overall general superintendence, direction and control of the Board of Directors (BoD).
Explanation
The Managing Director may also be designated as Chief Executive Officer or by any other name like General Manager. In a very small bank he/she is even called as Manager. Presently in most of the UCBs the designations Chief Executive Officer and General Manager is being used. It is left to the decision of the Board of the UCB to decide the designation. But RBI will address them as Managing Director.
The Managing Director is entrusted with the management of the whole or substantially the whole of affairs of a UCB. He/she will play the similar role as that of erstwhile CEO.
He has to carry out the affairs of the UCB, subject to the regulations or directions issued by the Reserve Bank from time to time. RBI is vested with powers to issue direction under section 35A of the B R Act, 1949(AACS). Any direction issued by RBI from time to time should be complied by the MD.
MD shall function under the overall general superintendence, direction and control of the Board of Directors. However the direction issued by the Board should not contravene the direction of RBI issued from time to time. The MD and the BoD should be familiar with all the directions issued by RBI from time to time including master directions and circulars.