RBI launches new Governance Rules for Co-operative Banks, Read and Submit Feedback

The Reserve Bank of India (RBI) has invited public comments on proposed changes to governance rules for urban and rural co-operative banks. On Tuesday, RBI released two draft regulations on its website for feedback.

The draft proposals include the Reserve Bank of India (Urban Co-operative Banks – Governance) Amendment Directions, 2026 and the Reserve Bank of India (Rural Co-operative Banks – Governance) Amendment Directions, 2026.

1. Draft Reserve Bank of India (Urban Co-operative Banks – Governance) Amendment Directions, 2026
2. Draft Reserve Bank of India (Rural Co-operative Banks – Governance) Amendment Directions, 2026

RBI has asked stakeholders, including banks and the general public, to submit their comments or suggestions by January 30, 2026. Feedback can be sent online through the “Connect2Regulate” section on RBI’s website. Comments can also be emailed or posted to the Department of Regulation (Governance Section) at RBI’s Central Office in Mumbai.

According to RBI, the proposed amendments aim to strengthen governance in co-operative banks. Under the Banking Regulation Act, 1949, directors of co-operative banks are allowed to serve for a maximum continuous term of 10 years. However, RBI has observed cases where this limit was bypassed through short resignations or brief breaks, followed by re-appointment or re-election to the board.

How to submit feedback?

The comments/feedback on the draft directions are invited from public/stakeholders by January 30, 2026. The comments/feedback may be submitted through the link under the ‘Connect2Regulate’ Section available on the Reserve Bank’s website. Alternatively, comments/feedback may also be forwarded to:

The Chief General Manager
Reserve Bank of India
Department of Regulation (Governance Section)
12th Floor, Central Office
Shahid Bhagat Singh Marg, Fort, Mumbai – 400001

Or by email with the subject line “Feedback on RBI (UCBs – Governance) Amendment Directions, 2026 / RBI (RCBs – Governance) Amendment Directions, 2026.”