Three-year cooling-off period for UCB Directors may set in motion a game of musical chairs

RBI tightens norms for re-appointment of directors on UCB boards

The RBI has amended its governance rules for Urban Co-operative Banks (UCBs), capping continuous board tenure at 10 years and mandating a minimum 3-year cooling-off period before re-appointment, effective immediately. The move targets a documented pattern of directors circumventing statutory limits via brief resignations, signaling tighter regulatory scrutiny on cooperative bank governance that compliance and risk officers should factor into board succession planning.