Home › Circulars › RBI/2013-14/23

Master Circular on Board of Directors for UCBs

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/23 · issued 01 Jul 2013 · ~2 min read
Quick answerRBI consolidated all instructions on UCB board composition, roles, and reviews as of June 30, 2013. Key updates include mandatory at least two directors with banking or professional qualifications, and a focus on professionalism and integrity.

What changed

This master circular updates the previous July 2012 version, consolidating all guidelines up to June 30, 2013. It reiterates the requirement for at least two directors with banking experience or professional qualifications in law, accountancy, or finance, except for Salary Earners' Banks. It also includes the Madhava Das Committee recommendations and a detailed list of dos and don'ts for directors.

What it means for you

UCBs must ensure their boards meet the minimum professional qualification standards to enhance governance and risk management. Banks need to review their bye-laws to incorporate these requirements and ensure all RBI/Government circulars are reviewed by the full board. Non-compliance could lead to supervisory scrutiny, especially for banks lacking qualified directors.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Who it affects

Primary (Urban) Co-operative Banks, Salary Earners' Banks (exempt from professional qualification requirement), Board of Directors of UCBs, Chief Executive Officers of UCBs

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What are the minimum qualifications required for directors on UCB boards?

At least two directors must have suitable banking experience at middle/senior management level or relevant professional qualifications in law, accountancy, or finance. This does not apply to Salary Earners' Banks.

Who is ineligible to become a director of a UCB?

Persons engaged in money lending, financing, or investment activities (as individual or through a concern), and those convicted of criminal offences including moral turpitude are ineligible as per model by-law no.9 and state co-operative acts.

What is the role of the board in loan policies?

The board must ensure proper loan policies are adopted and followed, while day-to-day administration is left to the chief executive officer.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1136: UBD.CO.BPD.MC.No.8/12.05.001/2013-14 — "Master Circular on Board of Directors - UCBs" dated July 1, 2013”
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/23 UBD.CO.BPD.MC.No. 8 /12.05.001/2013-14 July 1, 2013 Chief Executive Officers of All Primary (Urban) Co-operative Banks Dear Sir/Madam, Master Circular on Board of Directors - UCBs Please refer to our Master Circular UBD.BPD. MC. No. 8 /12.05.001/ 2012-13 dated July 2, 2012 on the captioned subject (available at RBI website www.rbi.org.in ). The enclosed Master Circular consolidates and updates all the instructions / guidelines on the subject up to June 30, 2013. Yours faithfully (A.K.Bera) Principal Chief General Manager Master Circular - Board of Directors Contents
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/23 · issued 01 Jul 2013. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Most relevant forCompliance TeamSenior Management / BoardBusiness Head / Vertical HeadInternal AuditRisk Management
🛠 Banker’s toolkit — checklists & reply templates →
Related circulars · Department of Regulation
SFB Pillar 3 Disclosure Norms Aligned with BaselUCB Deposit Rate Disclosure & Uniformity Rules UpdatedLAB Deposit Rate Disclosure & Uniformity Rules TightenedPayments Banks: Interest Rates Must Match Disclosed ScheduleRBI Updates Bulk Deposit Rate Rules and Disclosure Timing
Browse all departments →

💬 Banker Discussion

Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.

Loading comments…
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8110&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
—