The RBI has published the Urban Co-operative Banks - Governance Amendment Directions, 2026, refining the governance structures established in the previous set of directions to ensure better compliance.
RBI Releases Amendment Directions for Urban Co-operative Banks Governance
On May 25, 2026, the Reserve Bank of India (RBI) issued the Reserve Bank of India (Urban Co-operative Banks - Governance) Amendment Directions, 2026. This aims to amend the provisions regarding the Constitution of the Board and the Appointment of Directors as set forth in the earlier directions released on November 28, 2025.
These updates are a response to the legislative amendments introduced through the Banking Regulation (Amendment) Act, 2020, particularly in line with Section 10A(2A)(i). This ensures that the governance framework within urban co-operative banks is strengthened and aligns with current regulatory requirements aimed at enhancing operational transparency.
Practitioners in banking law are advised to review these amendments closely, as they may necessitate adjustments in governance policies and practices within urban co-operative banks, thereby ensuring compliance with the evolving regulatory landscape.
Citations
- RBI/DOR/2026-27/94
- DOR.GOV.REC.No.82/18.10.014/2026-27
