Date: 2026-01-08Category: Not ApplicableState: Union GovernmentCountry: India
RBI invites public comments on the Draft Reserve Bank of India (Urban Co-operative Banks - Governance) Amendment Directions, 2026 and Draft Reserve Bank of India (Rural Co-operative Banks - Governance) Amendment Directions, 2026
**Executive Summary**
The Reserve Bank of India (RBI) has released draft amendment directions for the governance of Urban and Rural Co-operative Banks. The public is invited to submit comments and feedback on these draft directions via the RBI website or email by January 30, 2026. These amendments address concerns related to directors' tenure in co-operative banks.
**Key Points / Main Content**
* **Draft Directions Released:** RBI has published the following draft directions for public comment:
* Draft Reserve Bank of India (Urban Co-operative Banks - Governance) Amendment Directions, 2026
* Draft Reserve Bank of India (Rural Co-operative Banks - Governance) Amendment Directions, 2026
* **Public Comment Period:**
* Comments and feedback are invited from the public and stakeholders.
* Deadline for submission: January 30, 2026.
* Submission method:
* Via the "Connect2Regulate" section on the RBI website.
* Via email to the Chief General Manager, with the subject line “Feedback on RBI (UCBs - Governance) Amendment Directions, 2026 / RBI (RCBs - Governance) Amendment Directions, 2026."
* **Background and Objective:**
* Existing regulations stipulate a maximum tenure of 10 years for directors of co-operative banks.
* RBI has observed attempts to circumvent this regulation.
* The amendments aim to ensure compliance by introducing a minimum cooling-off period for directors.
**Impact Analysis**
**Stakeholders:**
* **Urban and Rural Co-operative Banks**
**Impact:** Subject to new governance rules and regulations regarding the tenure of directors and cooling-off periods.
**Action Required:** Understand and comply with the new Amendment Directions.
* **Directors of Co-operative Banks**
**Impact:** May be subject to a cooling-off period after serving a certain tenure.
**Action Required:** Review the new regulations regarding their eligibility and tenure as directors.
* **RBI**
**Impact:** Responsible for implementing and enforcing the new regulations.
**Action Required:** Review public feedback and finalise the Amendment Directions.
* **General Public/Stakeholders**
**Impact:** Have the opportunity to provide input and feedback on the draft directions.
**Action Required:** Submit feedback on the draft directions to the RBI by the deadline.
Key Entities Referenced
Banking Regulation Act, 1949: Act that stipulates a maximum continuous tenure for directors of co-operative banks; Section 10A(2A)(i) read with Section 56.
Reserve Bank of India: Regulator issuing draft amendment directions for Urban and Rural Co-operative Banks governance.
Draft Reserve Bank of India (Urban Co-operative Banks - Governance) Amendment Directions, 2026: Proposed regulatory directions for the governance of urban co-operative banks.
Draft Reserve Bank of India (Rural Co-operative Banks - Governance) Amendment Directions, 2026: Proposed regulatory directions for the governance of rural co-operative banks.
Mumbai: Location of the Reserve Bank of India's Central Office, where comments/feedback can be submitted.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
January 08, 2026
RBI invites public comments on the Draft Reserve Bank of India (Urban Co-
operative Banks - Governance) Amendment Directions, 2026 and Draft Reserve
Bank of India (Rural Co-operative Banks - Governance)
Amendment Directions, 2026
Reserve Bank of India today placed on its website the following draft Directions for
public comments:
(1) Draft Reserve Bank of India (Urban Co-operative Banks - Governance) Amendment
Directions, 2026
(2) Draft Reserve Bank of India (Rural Co-operative Banks - Governance) Amendment
Directions, 2026
The comments/feedback on the draft directions are invited from public/stakeholders
by January 30, 2026. The comments/feedback may be submitted through the link
under the ‘Connect2Regulate’ Section available on the Reserve Bank’s
website. Alternatively, comments/feedback may also be forwarded to:
The Chief General Manager
Reserve Bank of India
Department of Regulation (Governance Section)
12th Floor, Central Office
Shahid Bhagat Singh Marg, Fort, Mumbai – 400001
Or by email with the subject line “Feedback on RBI (UCBs - Governance)
Amendment Directions, 2026 / RBI (RCBs - Governance) Amendment Directions,
2026.”
Background and Objective
Section 10A(2A)(i) read with Section 56 of the Banking Regulation Act, 1949
stipulates a maximum continuous tenure of 10 years for directors of co-operative
banks. Reserve Bank of India has observed instances where this requirement was
sought to be bypassed through brief resignations or brief interruptions between two
directorships followed by re-election or co-option to the Board of Directors. Such
practices undermine the intent and spirit of the law. To ensure compliance with the
aforesaid statutory provision in letter and spirit, it has been decided to introduce a
minimum cooling-off period for directors of co-operative banks.
(Brij Raj)
Press Release: 2025-2026/1883 Chief General Manager