Reserve Bank of India on May 25, 2026 issued the final amendment directions introducing a cooling-off period for directors of Urban Co-operative Banks (UCBs) and Rural Co-operative Banks (RCBs) after completing a continuous tenure of 10 years on the board.

The move follows draft amendment directions released by RBI on January 8, 2026, which had invited feedback from stakeholders regarding governance reforms in co-operative banks.

According to the central bank, the amendment aims to ensure effective implementation of provisions under the Banking Regulation Act, 1949 related to board governance and tenure of directors in co-operative banks.

RBI stated that feedback received on the draft framework was reviewed and suitable modifications were incorporated before issuing the final directions.

The central bank has issued the following final amendment directions:

Reserve Bank of India (Urban Co-operative Banks - Governance) Amendment Directions, 2026

Reserve Bank of India (Rural Co-operative Banks - Governance) Amendment Directions, 2026

The revised framework is intended to strengthen governance standards and improve board oversight across the co-operative banking sector.