RBI invites public comments on draft governance norms for cooperative banks

The Reserve Bank of India (RBI) has released draft governance amendment directions for rural and urban cooperative banks, inviting public comments to refine the proposed framework. The initiative is part of RBI’s broader effort to modernize cooperative banking regulations, ensuring stronger governance, improved risk management, and enhanced accountability.

The draft directions emphasize board composition, compliance standards, and oversight mechanisms, aiming to align cooperative banks with evolving financial sector requirements. By seeking stakeholder input, RBI intends to balance regulatory rigor with practical implementation, supporting both financial stability and inclusive growth.

This move highlights RBI’s commitment to strengthening cooperative banks, which play a vital role in India’s grassroots financial ecosystem.

Key Highlights

• Draft Directions: Governance amendments for rural and urban cooperative banks, 2026
• Objective: Enhance governance, accountability, and transparency
• Focus Areas: Board structures, compliance, risk management, oversight mechanisms
• Public Participation: RBI invites comments from stakeholders and the public
• Impact: Supports financial stability and inclusive banking reforms

Sources: RBI Press Release; BSE Corporate Filing; SEBI Regulatory Updates