The Reserve Bank of India (RBI) on May 25, 2026, notified the Reserve Bank of India (Urban Co-operative Banks - Governance) Amendment Directions, 2026 to amend the Reserve Bank of India (Urban Co-operative Banks - Governance) Directions, 2025.
The following has been stated:-
•The Reserve Bank of India has issued the Reserve Bank of India (Urban Co-operative Banks - Governance) Amendment Directions, 2026, with immediate effect, to strengthen governance norms for Urban Co-operative Banks (UCBs).
•The amendment follows changes introduced through the Banking Laws (Amendment) Act, 2025, which increased the maximum continuous tenure of UCB directors from eight years to ten years, effective August 01, 2025.
•RBI observed that some directors were bypassing tenure restrictions by resigning briefly and getting re-elected or re-appointed within a short period.
•To prevent such practices, the RBI has introduced a mandatory cooling-off period of three years after completion of ten continuous years on the Board of the same UCB.
•During this cooling-off period, the individual cannot be associated with the same UCB in any capacity other than as a member or customer, though appointment in another bank is permitted if otherwise eligible.
•For calculating continuous tenure, RBI clarified that previous periods of directorship separated by a break of less than three years will be counted together, while breaks of at least three years will reset the tenure calculation.
The detailed notification is given in the document below.
[Notification No.: RBI/DOR/2026-27/94 DOR.GOV.REC.No.82/18.10.014/2026-27]
