Reserve Bank of India (RBI) mandates 3-year cooling-off period for Urban Co-operative Bank directors

Exam-focused facts from the 28 May 2026 current affairs briefing.

Key facts

The Reserve Bank of India (RBI) has capped the continuous tenure of directors in Urban Co-operative Banks (UCBs) at 10 years.
A mandatory three-year cooling-off period is required before a director can be reappointed to the board of the same UCB through election, co-option, or any other route.
These norms were issued via the Reserve Bank of India (Urban Co-operative Banks - Governance) Amendment Directions, 2026 on May 25, 2026.
The amended directions modify the Reserve Bank of India (Urban Co-operative Banks - Governance) Directions, 2025 and come into force with immediate effect.
Under the Banking Laws (Amendment) Act, 2025, the maximum continuous tenure for UCB directors was increased from eight years to 10 years effective August 1, 2025.