Regulatory Alerts2026-05-25
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Reserve Bank of India (Rural Co-operative Banks - Governance) Amendment Directions, 2026
The Reserve Bank of India inserts a new paragraph 7A into the Reserve Bank of India (Rural Co-operative Banks - Governance) Directions, 2025, requiring directors of Rural Co-operative Banks (RCBs) to undergo a minimum three-year cooling-off period after completing a continuous tenure of ten years before being eligible for re-appointment. This cooling-off restriction prohibits the director from being associated with the RCB in any capacity other than as a member or customer during that period, though it does not preclude appointment to another bank. To prevent circumvention via brief resignations, the calculation of continuous tenure includes service preceding interruptions of less than three years, while excluding service preceding interruptions of at least three years. These Directions come into force with immediate effect.
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