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)           
Chief General Manager

Co-operative bank governance: draft rules introduce a cooling-off period to enforce ten-year director tenure; public comments invited. The Reserve Bank has published draft governance amendments for urban and rural co-operative banks introducing a minimum cooling-off period for directors to prevent evasion of the ten-year continuous tenure limit under Section 10A(2A)(i) read with Section 56 of the Banking Regulation Act, 1949. Public comments are invited by January 30, 2026 via the Connect2Regulate portal or by submission to the Department of Regulation (Governance Section).