RBI Restructures Co-operative Bank Boards with Mandatory Three-Year Cooling-Off Period
Board directors who serve a continuous span of ten years at a single co-operative bank are ineligible for immediate reappointment and must wait out the three-year hiatus before returning.
This structural modification aligns with the legislative updates introduced under the Banking Regulation (Amendment) Act, 2025, which stretched the ceiling on a director's maximum tenure from eight years to ten years.
These stringent limits are designed to curb long-standing concentration of power and management biases within local cooperative institutions, promoting corporate democracy.
Key Facts / Static GK
RBI Headquarters: Mumbai, Maharashtra
Banking Regulation Act Year: 1949
Practice Quiz — 27 May 2026
Q1. Consider the following statements regarding the Reserve Bank of India's new governance norms for co-operative bank directors: 1. A mandatory cooling-off period of three years is applicable only to Urban Co-operative Banks (UCBs). 2. The maximum continuous tenure limit for co-operative bank directors has been extended from 8 years to 10 years. 3. During the cooling-off period, directors can still serve as regular consultants or advisory members of the same bank. Which of the statements given above is/are correct?
Q2. Who is the head of the 8-member expert committee 'Q-SAFE' constituted by the Reserve Bank of India to assess quantum technology risks in banking?
Q3. Under the newly launched Micro Credit Card Scheme for MSMEs, what is the maximum credit limit and the associated guarantee coverage available for Udyam-registered micro enterprises?
Q4. What is the name of India's first 300-km Universal Rocket Launching System flagged off by Defence Minister Rajnath Singh in May 2026?
Q5. Which of the following schemes were merged to form the Pradhan Mantri Anusuchit Jaati Abhyuday Yojana (PM-AJAY)? 1. Pradhan Mantri Adarsh Gram Yojana 2. Special Central Assistance to Scheduled Castes Sub Plan 3. Babu Jagjivan Ram Chhatrawas Yojana 4. Rashtriya Garib Kalyan Yojana
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