**Executive Summary**
On December 04, 2025, the Reserve Bank of India (RBI) issued amendment directions on business authorization for co-operative banks. This follows the issuance of a Draft Master Direction on Business Authorization for Co-operative Banks (Directions), 2025, on July 28, 2025, and the incorporation of feedback received. The document includes three Repeal Directions/Guidelines and one Amendment Direction.
**Key Points / Main Content**
* **Repeal Directions/Guidelines and Amendment Direction:**
* RBI has issued three Repeal Directions / Guidelines and one Amendment Direction to revise extant instructions applicable to co-operative banks.
* **Specific Directions Issued:**
* Reserve Bank of India (Urban Co-operative Banks – Licensing, Scheduling and Regulatory Classification) Repeal Guidelines, 2025.
* Reserve Bank of India (Urban Co-operative Banks – Branch Authorisation) Repeal Directions, 2025.
* Reserve Bank of India (Rural Co-operative Banks – Branch Authorisation) Repeal Directions, 2025.
* Reserve Bank of India (Rural Co-operative Banks – Miscellaneous) (Amendment) Directions, 2025.
* **Purpose of Revisions:**
* The revisions aim to empower co-operative banks with enhanced operational autonomy while embedding robust safeguards.
* The revisions facilitate the active contribution of co-operative banks to India's economic growth through expanded credit outreach.
**Impact Analysis**
**Stakeholders: Primary (Urban) Co-operative Banks (UCBs), State Co-operative banks (StCBs) and District Central Co-operative banks (DCCBs)**
**Impact**
The directions impact these banks concerning business authorization, aligning instructions, consolidating guidelines, and providing greater operational autonomy within a framework of safeguards.
**Action Required**
Review and implement the new directives related to licensing, scheduling, regulatory classification, branch authorization, and miscellaneous activities as per the revised guidelines.
Key Entities Referenced
Reserve Bank of India: India's central bank and the primary regulator mentioned in the context of issuing directions and guidelines to cooperative banks.
Co-operative Banks: The main subject of the policy. Includes Primary (Urban) Co-operative Banks (UCBs), State Co-operative banks (StCBs) and District Central Co-operative banks (DCCBs).
Draft Master Direction (MD) on Business Authorization for Co-operative Banks (Directions), 2025: The initial draft document upon which the amendment directions are based.
Reserve Bank of India (Urban Co-operative Banks – Licensing, Scheduling and Regulatory Classification) Repeal Guidelines, 2025: One of the three repeal directions issued by RBI as described in the text.
Mumbai: Location of the Department of Communication, Central Office of the Reserve Bank of India.
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
December 04, 2025
RBI issues Amendment Directions on Business Authorization for
Co-operative Banks
The Reserve Bank of India has, from time to time, issued several instructions/
guidelines to co-operative banks, i.e., Primary (Urban) Co-operative Banks (UCBs),
State Co-operative banks (StCBs) and District Central Co-operative banks (DCCBs),
related to permission for place of business, change of name and scheduling. With a
view to harmonising the above instructions/ guidelines and consolidating them in one
place, Draft Master Direction (MD) on Business Authorization for Co-operative Banks
(Directions), 2025 was issued on July 28, 2025 seeking feedback from banks and
other stakeholders.
2. Feedback received on the draft MD has been examined and consequent
modifications have been suitably incorporated in the final Directions. A statement on
the feedback received for the draft Master Direction is provided in the Annex.
3. Accordingly, the Reserve Bank of India has today issued the following three
Repeal Directions / Guidelines and one Amendment Direction to revise the extant
instructions applicable to co-operative banks:
(1) Reserve Bank of India (Urban Co-operative Banks – Licensing, Scheduling and
Regulatory Classification) Repeal Guidelines, 2025
(2) Reserve Bank of India (Urban Co-operative Banks – Branch Authorisation)
Repeal Directions, 2025
(3) Reserve Bank of India (Rural Co-operative Banks – Branch Authorisation)
Repeal Directions, 2025
(4) Reserve Bank of India (Rural Co-operative Banks – Miscellaneous)
(Amendment) Directions, 2025
4. These revisions strike a balanced approach, empowering co-operative banks with
enhanced operational autonomy while embedding robust safeguards. The calibrated
relaxation of authorization norms paves the way for cooperative banks to actively
contribute to India’s economic growth by expanding credit outreach, leveraging
technology-driven solutions, and supporting localized development priorities.
(Brij Raj)
Press Release: 2025-2026/1627 Chief General Manager