The Reserve Bank of India (RBI), on January 08, 2026, has placed on its website the Draft Reserve Bank of India (Urban Co-operative Banks – Governance) Amendment Directions, 2026 and the Draft Reserve Bank of India (Rural Co-operative Banks – Governance) Amendment Directions, 2026 for public comments. These draft Directions propose amendments to the existing governance framework applicable to urban and rural co-operative banks.
The draft Directions seek to address concerns relating to the tenure of directors of co-operative banks. Although Section 10A(2A)(i) read with Section 56 of the Banking Regulation Act, 1949 prescribes a maximum continuous tenure of ten years for directors, RBI has observed instances where this limit was effectively circumvented through brief resignations or interruptions followed by re-appointment. To uphold the spirit of the law, the draft amendments propose the introduction of a mandatory minimum cooling-off period for directors of co-operative banks.
Public and stakeholder comments on the draft Directions have been invited up to January 30, 2026. Feedback may be submitted through the Connect2Regulate section on the RBI website, or alternatively forwarded to the Chief General Manager, Department of Regulation (Governance Section), Reserve Bank of India, Mumbai, or by email with the specified subject line.
[Notification No. 2025-2026/1883]
