The Reserve Bank of India has published draft amendments to its governance directions for urban co-operative banks and rural co-operative banks, proposing to introduce a minimum cooling-off period for directors. The proposal is intended to reinforce the statutory maximum continuous tenure of 10 years for directors of co-operative banks under the Banking Regulation Act, 1949, after the RBI observed attempts to bypass the requirement through brief resignations or short interruptions between successive board tenures followed by re-election or co-option. Public and stakeholder comments are invited by January 30, 2026 through the RBI’s Connect2Regulate channel.
Reserve Bank of India 2026-01-08
Reserve Bank of India launches consultation on co-operative bank governance amendments introducing a director cooling-off period
The Reserve Bank of India has released draft amendments to governance directions for urban and rural co-operative banks, proposing a minimum cooling-off period for directors to enforce the statutory maximum tenure of 10 years. Comments are invited by January 30, 2026, via the RBI’s Connect2Regulate channel.