The Reserve Bank of India has issued the Urban Co-operative Banks – Responsible Business Conduct Directions, 2025 to strengthen governance, fairness, and ethical standards in the functioning of urban co-operative banks. Issued under various provisions of the Banking Regulation Act, 1949, the Directions aim to ensure that UCBs conduct their business in a responsible, transparent, and customer-centric manner in the public interest. The framework applies uniformly to all Urban Co-operative Banks, defined as Primary Co-operative Banks, and comes into force from the date of issue. By formalising responsible business conduct obligations, the RBI seeks to enhance trust in the co-operative banking sector, promote prudent decision-making, and align operational practices with sound regulatory expectations, thereby supporting financial stability and depositor confidence.
RESERVE BANK OF INDIA
RBI/DOR/2025-26/292
DOR.MCS.REC.No.211/01-01-037/2025-26 | Dated: November 28, 2025
Reserve Bank of India (Urban 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, 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 Tile and commencement
1. These Directions shall be called the Reserve Bank of India (Urban Co-operative Banks – Responsible Business Conduct) Directions, 2025.
2. These Directions shall become effective from the date of issue, unless indicated otherwise.
B. Applicability
3. These directions shall be applicable to all Urban Co-operative Banks (hereinafter collectively referred to as ‘UCBs’ and individually as a ‘UCB’).
In this context, Urban Co-operative Banks shall mean Primary Co-operative Banks as defined under section 5(ccv) read with Section 56 of Banking Regulation Act, 1949.
Read Full text of the Notification: https://rbidocs.rbi.org.in/rdocs/notification/PDFs/292MD76099C95D4BD4139A4EBCDA2F50BEFA2.PDF
