Reserve Bank of India has issued the three Repeal Directions / Guidelines and one Amendment Direction to revise the extant instructions applicable to co-operative banks
FinTech BizNews Service
Mumbai, 4 December 2025: The Reserve Bank of India has, from time to time, issued several instructions/ guidelines to co-operative banks, i.e., Primary (Urban) Co-operative Banks (UCBs), State Co-operative banks (StCBs) and District Central Co-operative banks (DCCBs), related to permission for place of business, change of name and scheduling. With a view to harmonising the above instructions/ guidelines and consolidating them in one place, Draft Master Direction (MD) on Business Authorization for Co-operative Banks (Directions), 2025 was issued on July 28, 2025 seeking feedback from banks and other stakeholders.
2. Feedback received on the draft MD has been examined and consequent modifications have been suitably incorporated in the final Directions. A statement on the feedback received for the draft Master Direction is provided in the Annex.
3. Accordingly, the Reserve Bank of India has today issued the following three Repeal Directions / Guidelines and one Amendment Direction to revise the extant instructions applicable to co-operative banks:
Reserve Bank of India (Urban Co-operative Banks – Licensing, Scheduling and Regulatory Classification) Repeal Guidelines, 2025
Reserve Bank of India (Urban Co-operative Banks – Branch Authorisation) Repeal Directions, 2025
Reserve Bank of India (Rural Co-operative Banks – Branch Authorisation) Repeal Directions, 2025
Reserve Bank of India (Rural Co-operative Banks – Miscellaneous) (Amendment) Directions, 2025
4. These revisions strike a balanced approach, empowering co-operative banks with enhanced operational autonomy while embedding robust safeguards. The calibrated relaxation of authorization norms paves the way for cooperative banks to actively contribute to India’s economic growth by expanding credit outreach, leveraging technology-driven solutions, and supporting localized development priorities.
Reserve Bank of India (Urban Co-operative Banks – Licensing, Scheduling and Regulatory Classification) Repeal Guidelines, 2025
The Reserve Bank of India being satisfied that it is necessary and expedient in the public interest to do so, hereby repeals the Reserve Bank of India (Urban Cooperative Banks – Licensing, Scheduling and Regulatory Classification) Guidelines, 2025 (RBI/DOR/2025-26/269) issued on November 28, 2025. The Guidelines have now been replaced with Reserve Bank of India (Urban Cooperative Banks – Licensing, Scheduling and Regulatory Classification) Guidelines, 2025 issued on December 04, 2025. 2. Notwithstanding such repeal, any action taken or purported to have been taken, or initiated under the repealed guidelines shall continue to be governed by the provisions thereof. All approvals or acknowledgments granted under these repealed guidelines shall be deemed as governed by these guidelines. Further, the repeal of these guidelines shall not in any way prejudicially affect: (1) any right, obligation or liability acquired, accrued, or incurred thereunder; (2) any, penalty, forfeiture, or punishment incurred in respect of any contravention committed thereunder; (3) any investigation, legal proceeding, or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture, or punishment as aforesaid; and any such investigation, legal proceedings or remedy may be instituted, continued, or enforced and any such penalty, forfeiture or punishment may be imposed as if those directions, instructions, or guidelines had not been repealed.
Reserve Bank of India (Urban Co-operative Banks - Branch Authorisation) Repeal Directions, 2025
The Reserve Bank of India being satisfied that it is necessary and expedient in the public interest to do so, hereby repeals the Reserve Bank of India (Urban Cooperative Banks - Branch Authorisation) Directions, 2025 (DoR.LIC.REC.No.190/07-01-000/2025-26) issued on November 28, 2025. The Directions have now been replaced with Reserve Bank of India (Urban Co-operative Banks - Branch Authorisation) Directions, 2025 issued on December 04, 2025. 2. Notwithstanding such repeal, any action taken or purported to have been taken, or initiated under the repealed Directions shall continue to be governed by the provisions thereof. All approvals or acknowledgments granted under these repealed Directions shall be deemed as governed by these Directions. Further, the repeal of these Directions shall not in any way prejudicially affect: (1) any right, obligation or liability acquired, accrued, or incurred thereunder; (2) any, penalty, forfeiture, or punishment incurred in respect of any contravention committed thereunder; (3) any investigation, legal proceeding, or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture, or punishment as aforesaid; and any such investigation, legal proceedings or remedy may be instituted, continued, or enforced and any such penalty, forfeiture or punishment may be imposed as if those directions, instructions, or guidelines had not been repealed.
Reserve Bank of India (Rural Co-operative Banks - Branch Authorisation) Repeal Directions, 2025
The Reserve Bank of India being satisfied that it is necessary and expedient in the public interest to do so, hereby repeals the Reserve Bank of India (Rural Cooperative Banks - Branch Authorisation) Directions, 2025 (DoR.LIC.REC.No.215/07-01-000/2025-26) issued on November 28, 2025. The Directions have now been replaced with Reserve Bank of India (Rural Co-operative Banks - Branch Authorisation) Directions, 2025 issued on December 04, 2025. 2. Notwithstanding such repeal, any action taken or purported to have been taken, or initiated under the repealed Directions shall continue to be governed by the provisions thereof. All approvals or acknowledgments granted under these repealed Directions shall be deemed as governed by these Directions. Further, the repeal of these Directions shall not in any way prejudicially affect: (1) any right, obligation or liability acquired, accrued, or incurred thereunder; (2) any, penalty, forfeiture, or punishment incurred in respect of any contravention committed thereunder; (3) any investigation, legal proceeding, or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture, or punishment as aforesaid; and any such investigation, legal proceedings or remedy may be instituted, continued, or enforced and any such penalty, forfeiture or punishment may be imposed as if those directions, instructions, or guidelines had not been repealed.
Reserve Bank of India (Rural Co-operative Banks – Miscellaneous) (Amendment) Directions, 2025
Reserve Bank of India had issued Reserve Bank of India (Rural Co-operative Banks – Miscellaneous) Directions, 2025 (DoR.SOG(SPE).REC.No.238/13-04-001/2025-26) on November 28, 2025. In exercise of powers conferred by Section 35A read with Section 56 of the Banking Regulation Act, 1949, as amended vide Banking Regulation (Amendment) Act 2020 (39 of 2020) and all other provisions / laws enabling the Reserve Bank of India (‘RBI’) in this regard, RBI being satisfied that it is necessary and expedient in the public interest to do so, hereby issues these Directions hereinafter specified. 1. These Directions shall be called the Reserve Bank of India (Rural Co-operative Banks – Miscellaneous) (Amendment) Directions, 2025. 2. These Directions shall come into force with immediate effect. 3. These Amendment Directions shall modify the Reserve Bank of India (Rural Cooperative Banks – Miscellaneous) Directions, 2025 (hereinafter referred to as ‘Master Direction’) as under – 4. After paragraph 36 of the Master Direction, the following sub-paras shall be inserted, namely - B. Display of Bank’s Name 36A. A bank should generally display its full name in any stationery item, publicity material, website, mobile application, advertisement, name board, etc., and the same must conform to the name as it appears in the Certificate of Registration granted by the RCS and the banking licence granted by the Reserve Bank. 36B. While the use of abbreviation/abridged name/logo, etc., is permitted as part of the brand building effort of the bank, it must be ensured that the full name as appearing in the banking licence is also shown along with such abbreviated/abridged name/logo in all publicity material/stationery. Besides, the font size used for the full name shall not be 2 smaller than the one used for the abbreviated name/abridged name/logo. The words "cooperative bank/ sahakari bank”, indicating the nature of the bank, must be prominently displayed in the full name/ abbreviation/abridged name/logo of the bank in equal fonts. Any contravention or non-compliance to the same will attract penalties and enforcement action. C. Norms for inclusion of a StCB in the Second Schedule to the Reserve Bank of India Act, 1934 36C.StCBs in compliance with ECBA and the following additional norms, may apply to the Regional Office concerned of the Reserve Bank for inclusion in the Second Schedule to the Reserve Bank of India Act, 1934: (1) CRAR of at least 3 per cent more than the minimum CRAR requirement applicable to the bank; and (2) No major regulatory and supervisory concerns. 36D. The above information shall be based on the assessed financials and findings of the NABARD inspection report or audited financial statements, whichever is the latest. The StCB shall submit a copy to NABARD, which in turn shall forward it to the Regional Office of the Reserve Bank, along with its comments and recommendation in terms of subsection (6A) of section 42 of the Reserve Bank of India Act, 1934. An eligible StCB shall submit its application with the following documents: (1) Copy of the resolution passed by the Annual General Body / Board of Directors to make an application to RBI for inclusion in the Second Schedule to the Reserve Bank of India Act, 1934 and containing the name(s) of bank official(s) authorized to correspond with RBI in this regard; and (2) Major financial details of the bank together with copies of the published balance sheet for the last three years.
