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** 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. The draft directions are available on the RBI website. Public comments and feedback are due by January 30, 2026. **Key Points / Main Content** * **Draft Directions for Public Comment:** * RBI has placed draft directions on its website for public comment. * These directions pertain to amendments in governance for both Urban Co-operative Banks (UCBs) and Rural Co-operative Banks (RCBs). * **Feedback Submission:** * Comments and feedback are invited from the public and stakeholders. * The deadline for submitting feedback is January 30, 2026. * Feedback can be submitted through the "Connect2Regulate" section on the RBI website. * Alternatively, feedback can be sent via email with a specific subject line. * **Background and Objective:** * The move aims to ensure compliance with Section 10A(2A)(i) read with Section 56 of the Banking Regulation Act, 1949. * RBI has observed instances where the regulation stipulating a maximum continuous tenure of 10 years for co-operative bank directors was circumvented. * The intent is to introduce a minimum cooling-off period for directors to prevent circumvention of the law through brief resignations or interruptions. **Impact Analysis** **Stakeholders: Urban Co-operative Banks (UCBs) and Rural Co-operative Banks (RCBs)** * **Impact:** The new directions will change the governance structure, particularly regarding the tenure and cooling-off period of directors. * **Action Required:** UCBs and RCBs need to review the draft directions, assess the impact on their board composition and governance practices, and provide feedback to RBI by January 30, 2026. **Stakeholders: Directors of UCBs and RCBs** * **Impact:** The new directions will impact the eligibility and tenure of directors, potentially requiring a cooling-off period after a certain term length. * **Action Required:** Directors need to familiarize themselves with the proposed changes, understand their eligibility status, and adjust their plans accordingly. **Stakeholders: RBI** * **Impact:** The RBI will be responsible for implementing and monitoring the new governance directives, necessitating updates to regulations and supervisory processes. * **Action Required:** The RBI must collect and analyze public feedback, finalize the directions, and communicate the changes to the relevant stakeholders.

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