RBI Issues Repeal & Amendment Directions for Co-operative Banks to Harmonize Business Authorization Guidelines – Dec 2025

On 4-12-2025, the Reserve Bank of India issued 3 Repeal Directions Guidelines and 1 Amendment Direction to revise the extant instructions applicable to co-operative banks.

Objectives:

1. To strike a balanced approach, empowering co-operative banks with enhanced operational autonomy while embedding robust safeguards;

2. 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.

Background:

1. Reserve Bank has issued several instructions and guidelines to co-operative banks from time to time.

2. These co-operative banks could include Primary (Urban) Co-operative Banks (UCBs), State Co-operative banks (StCBs), and District Central Co-operative banks (DCCBs).

3. These guidelines/ instructions were related to permission for place of business, change of name and scheduling.

4. With a view to harmonizing 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 28-7-2025.

Hence, the Reserve Bank of India has issued the following 3 Repeal Directions Guidelines and 1 Amendment Direction to revise the extant instructions applicable to co-operative bank:

1. Reserve Bank of India (Urban Co-operative Banks — Licensing, Scheduling and Regulatory Classification) Repeal Guidelines, 2025;

2. Reserve Bank of India (Urban Co-operative Banks — Branch Authorisation) Repeal Directions, 2025;

3. Reserve Bank of India (Rural Co-operative Banks — Branch Authorisation) Repeal Directions, 2025;

4. Reserve Bank of India (Rural Co-operative Banks — Miscellaneous) (Amendment) Directions, 2025.