The Reserve Bank of India issued the Rural Co-operative Banks – Responsible Business Conduct Directions, 2025 on November 28, 2025, to embed fair, ethical, and customer-centric practices across Rural Co-operative Banks. Issued under the Banking Regulation Act, 1949, the Directions apply to State and Central Co-operative Banks and take effect from the date of issuance. The framework seeks to strengthen governance, transparency, and accountability in the conduct of banking business, ensuring that RCBs align operations with public interest and regulatory expectations. By standardising responsible business conduct norms, the Directions aim to enhance customer protection, reinforce trust in the cooperative banking system, and promote sustainable banking practices. The RBI’s move underscores its supervisory focus on ethical conduct and prudent operations in the cooperative sector, providing regulatory clarity and a uniform benchmark for responsible behaviour across rural cooperative banks operating in India.
RESERVE BANK OF INDIA
RBI/DOR/2025-26/317
DOR.MCS.REC.No.236/01-01-038/2025-26 | Dated: November 28, 2025
Reserve Bank of India (Rural Co-operative Banks – Responsible Business Conduct) Directions, 2025
In exercise of the powers conferred by Sections 21, 35A, 45ZC(3), 45ZE(4) and 56 of Banking Regulation Act, 1949 and all other provisions / laws enabling the Reserve Bank of India (hereinafter called ‘the Reserve Bank) in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Directions hereinafter specified.
Chapter I – Preliminary
A. Short Title and Commencement
1. These Directions shall be called the Reserve Bank of India (Rural Co-operative Banks – Responsible Business Conduct) Directions, 2025.
2. These Directions shall become effective from the date of issue, unless indicated otherwise.
B. Applicability
These Directions shall be applicable to Rural Co-operative Banks (hereinafter collectively referred to as ‘RCBs’ and individually as an ‘RCB’) operating in India.
In this context, Rural Co-operative Banks shall mean State Co-operative Banks and Central Co-operative Bank, as defined in the National Bank for Agriculture and Rural Development Act, 1981.
Read Full text of the Notification: https://rbidocs.rbi.org.in/rdocs/notification/PDFs/317MD887462600A924B8CB0DD389AC78041C5.PDF
