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RBI Plan: 3-Year Cooling-Off for Co-op Bank Directors

9 January 20261 min read
BANKING & FINANCERBI Plan: 3-YearCooling-Off forCo-op BankDirectors9 January 2026safalsetu.com

Why in the news

RBI floated a proposal making co-operative bank directors step aside once they complete a decade of unbroken service.

Key facts

  • Cooling-off: 3 years; no re-appointment and no role in that bank except as an ordinary member or customer.
  • Meanwhile the person may join the board of a different co-operative bank.
  • Gaps shorter than 3 years do not restart the clock.

Legal background

  • The proposal puts the raised tenure cap into practice.

Exam angle

  • Maximum continuous tenure: 10 years (earlier 8); regulator: RBI.

Test yourself

1. What cooling-off period did RBI propose for co-operative bank directors after 10 continuous years?

The proposed break is 3 years.

2. The Banking Regulation (Amendment) Act raised the maximum continuous tenure of co-operative bank directors to what?

The cap went from 8 years to 10 years.

3. During the RBI's proposed cooling-off period, a director may do what?

The person can join another co-operative bank's board.

This topic is part of Daily Current Affairs 8 January 2026 (16 topics).

All topics of the dayDay quizJanuary 2026

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