EconomyWednesday, 27 May 2026·https://testbook.com/current-affairs/27-may-2026-daily-current-affairs
RBI tightens Urban Co-operative Bank director tenure rules in 2026
RBI issued 2026 governance directions capping UCB director tenure at 10 years with a 3-year cooling-off period.
Key highlights
Direct fact
In May 2026, the Reserve Bank of India issued the Urban Co-operative Banks (Governance) Amendment Directions, 2026, capping continuous director service at 10 years and mandating a 3-year cooling-off period before re-appointment.
Key specifics
- Maximum continuous tenure fixed at 10 years for a director on an Urban Co-operative Bank board.
- A compulsory 3-year cooling-off period applies after completing the 10-year limit.
- The rule covers re-appointment through election, co-option, or any other method.
- During cooling-off, the person cannot be associated with the same UCB except as a member or customer.
- RBI said the move prevents brief resignations followed by immediate re-election or co-option.
Exam lens
Banking governance, RBI directions, tenure and cooling-off period, UCB regulation — TNPSC may ask: Which regulator fixed the 10-year cap and 3-year cooling-off for UCB directors?