The Reserve Bank of India (RBI) on November 28, 2025, issued the Reserve Bank of India (Rural Co-operative Banks - Responsible Business Conduct) Directions, 2025
The following has been stated namely: -
• It aims to establish a standardized framework for State and Central Co-operative Banks, ensuring ethical and customer-centric banking practices. The guidelines emphasize transparent and accessible branch operations, clear communication of services and charges, and effective mechanisms for grievance redressal.
• Responsible lending practices are mandated, including disclosure of Annual Percentage Rates and adherence to ethical loan recovery processes.
• Banks are encouraged to expand outreach to underserved rural areas to promote financial inclusion, while deposit account management must ensure transparency and protection of customer rights.
• Efficient and secure payment solutions are required, along with measures to safeguard customer interests, including handling of deceased account holders’ estates and safe deposit locker contents.
• Overall, these directions aim to strengthen operational integrity and customer trust in rural co-operative banks, aligning them with contemporary banking standards.
• This shall come into force from November 28, 2025.
[Notification no. - RBI/DOR/2025-26/317 DOR.MCS.REC.No.236/01-01-038/2025-26]
