The Reserve Bank of India (RBI), on November 28, 2025, issued the Reserve Bank of India (Rural Co-operative Banks – Undertaking of Financial Services) Directions, 2025.
The following has been stated:-
• An RCB shall be permitted to undertake insurance business as corporate agent without risk participation, subject to their fulfilling the following terms and conditions:
• An RCB shall be a Scheduled or licensed State Co-operative Bank (SCB) or a licensed District Central Co-operative Bank (DCCB);
• An RCB shall have a minimum positive net worth [real or exchangeable value of paid-up capital and reserves as defined in Section 11 of the Banking Regulation Act, 1949(AACS)] of ₹50 crore as per the latest NABARD Inspection Report;
• An RCB shall have earned net profit for the last three years and shall not have any accumulated losses;
[Notification no. RBI/DoR/2025-26/297 DoR.AUT.REC.No.216/24.01.042/2025-26]
