Co-operative Banks , and
Central Co-operative Banks .
Mandatory 3-year cooling-off period for directors after 10 continuous years on same board.
During cooling-off, cannot be associated with same bank except as member or customer .
Can serve as director on another bank’s board if eligible.
Any interruption less than 3 years counts as part of continuous tenure.
Only a break of at least 3 years resets tenure calculation.
Banking Regulation (Amendment) Act, 2025 increased max tenure from 8 years to 10 years (effective 1 August 2025 ).
Draft directions released on 8 January 2026 ; comments invited until 30 January 2026 .
Final directions took effect on 25 May 2026 .
A cooling-off period is a mandatory gap between two periods of service in the same post or institution.
FAQ (Frequently Asked Questions)
Q1: What is the new rule for directors of co-operative banks?
A: A director who serves for 10 continuous years on the board of the same co-operative bank must take a mandatory break of three years before they can be re-appointed.
Q2: Can a former director do anything for the same bank during the three-year cooling-off period?
A: No. They cannot work for the bank in any capacity. They can only be a member (shareholder) or a customer (account holder or borrower).
Q3: Can the same person become a director of another co-operative bank during the cooling-off period?
A: Yes, if they are otherwise eligible under the rules. They can serve on the board of a different co-operative bank.
Q4: How is continuous tenure calculated if there is a small break?
A: Any break of less than three years is counted as part of the total tenure. Only a break of three years or more resets the calculation.
Q5: When did these final directions come into effect?
A: The final Amendment Directions were issued and came into effect on 25 May 2026.
Month: Current Affairs - May 26, 2026
Category: RBI Policies