HomeCirculars › RBI/DOR/2025-26/123

RBI Directives for Rural Co-operative Banks

Current · Source: Reserve Bank of India · RBI/DOR/2025-26/123 · issued 04 Dec 2025 · ~2 min read
Quick answerRBI issues directives for rural co-operative banks to display their full name and for StCBs to adhere to certain norms for inclusion in the Second Schedule to the Reserve Bank of India Act, 1934.
The rule, in the simplest words
How it plays out — a real example

Priya, a compliance officer at a rural co-operative bank in Madurai, checks the new name boards being installed. She ensures the full bank name 'Madurai District Co-operative Bank Ltd.' appears in letters as big as the logo, and the words 'co-operative bank' are clearly visible. She also reminds the team that any ad or letter must show the full name, not just the short form 'MDCB'.

What changed

RBI has issued the Reserve Bank of India (Rural Co-operative Banks – Miscellaneous) (Amendment) Directions, 2025, which modifies the Reserve Bank of India (Rural Co-operative Banks – Miscellaneous) Directions, 2025. The amendments include displaying the full name of the bank for all rural co-operative banks and adhering to certain norms for StCBs for inclusion in the Second Schedule to the Reserve Bank of India Act, 1934.

What it means for you

These directives aim to ensure that rural co-operative banks display their full name and that StCBs adhere to certain norms for inclusion in the Second Schedule to the Reserve Bank of India Act, 1934. This will help in maintaining transparency and accountability in the banking sector.

What you must do

Who it affects

Rural Co-operative Banks (for display requirements), State Co-operative Banks (StCBs) (for Second Schedule norms), Regional Offices of the Reserve Bank of India, NABARD

❓ Common questions

What is the purpose of the Reserve Bank of India (Rural Co-operative Banks – Miscellaneous) (Amendment) Directions, 2025?

The purpose of the amendment is to ensure that rural co-operative banks display their full name and that StCBs adhere to certain norms for inclusion in the Second Schedule to the Reserve Bank of India Act, 1934.

What are the norms for inclusion in the Second Schedule to the Reserve Bank of India Act, 1934?

The norms include a CRAR of at least 3 per cent more than the minimum CRAR requirement applicable to the bank and no major regulatory and supervisory concerns. These norms apply to StCBs.

📜 Read the original circular — full text as issued by RBI
RBI/DOR/2025-26/123 DOR.SOG(SPE).REC.No.329/13-04-001/2025-26 December 04, 2025 Reserve Bank of India (Rural Co-operative Banks – Miscellaneous) (Amendment) Directions, 2025 Reserve Bank of India had issued Reserve Bank of India (Rural Co-operative Banks – Miscellaneous) Directions, 2025 (DoR.SOG(SPE).REC.No.238/13-04-001/2025-26) on November 28, 2025 . In exercise of powers conferred by Section 35A read with Section 56 of the Banking Regulation Act, 1949, as amended vide Banking Regulation (Amendment) Act 2020 (39 of 2020) and all other provisions / laws enabling the Reserve Bank of India (‘RBI’) in this regard, RBI being satisfied that it is necessary and expedient in the public interest to do so, hereby issues these Directions hereinafter specified. These Directions shall be called the Reserve Bank of India (Rural Co-operative Banks – Miscellaneous) (Amendment) Directions, 2025. These Directions shall come into force with immediate effect. These Amendment Directions shall modify the Reserve Bank of India (Rural Co-operative Banks – Miscellaneous) Directions, 2025 (hereinafter referred to as ‘Master Direction’) as under – After paragraph 36 of the Master Direction, the following sub-paras shall be inserted, namely - B. Display of Bank’s Name 36A. A bank should generally display its full name in any stationery item, publicity material, website, mobile application, advertisement, name board, etc., and the same must conform to the name as it appears in the Certificate of Registration granted by the RCS and the banking licence granted by the Reserve Bank. 36B. While the use of abbreviation/abridged name/logo, etc., is permitted as part of the brand building effort of the bank, it must be ensured that the full name as appearing in the banking licence is also shown along with such abbreviated/abridged name/logo in all publicity material/stationery. Besides, the font size used for the full name shall not be smaller than the one used for the abbreviated name/abridged name/logo. The words "co-operative bank/ sahakari bank”, indicating the nature of the bank, must be prominently displayed in the full name/ abbreviation/abridged name/logo of the bank in equal fonts. Any contravention or non-compliance to the same will attract penalties and enforcement action. C. Norms for inclusion of a StCB in the Second Schedule to the Reserve Bank of India Act, 1934 36C.StCBs in compliance with ECBA and the following additional norms, may apply to the Regional Office concerned of the Reserve Bank for inclusion in the Second Schedule to the Reserve Bank of India Act, 1934: CRAR of at least 3 per cent more than the minimum CRAR requirement applicable to the bank; and No major regulatory and supervisory concerns. 36D. The above information shall be based on the assessed financials and findings of the NABARD inspection report or audited financial statements, whichever is the latest. The StCB shall submit a copy to NABARD, which in turn shall forward it to the Regional Office of the Reserve Bank, along with its comments and recommendation in terms of sub-section (6A) of section 42 of the Reserve Bank of India Act, 1934. An eligible StCB shall submit its application with the following documents: Copy of the resolution passed by the Annual General Body / Board of Directors to make an application to RBI for inclusion in the Second Schedule to the Reserve Bank of India Act, 1934 and containing the name(s) of bank official(s) authorized to correspond with RBI in this regard; and Major financial details of the bank together with copies of the published balance sheet for the last three years. (Manoranjan Padhy) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/DOR/2025-26/123 · issued 04 Dec 2025. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Topics: Co-operative Banks
Key dataSee the live numbers behind this topic: RBI Penalty Tracker, NPA / Asset-Quality Tracker — updated from official RBI data.
Key termsPlain-English definitions of terms in this circular — see the full Indian banking glossary. KYC / AML · Gross NPA (GNPA) · Deposit insurance (DICGC) · Scheduled Commercial Bank (SCB)
Who does what — compliance checklist
💻 IT / Systems
  • Display the full name of the bank in all stationery items, publicity materials, websites, mobile applications, advertisements, and name boards.
📜 Compliance
  • Ensure that the full name as appearing in the banking licence is also shown along with the abbreviated/abridged name/logo in all publicity materials/stationery.
  • For StCBs: Adhere to the norms for inclusion in the Second Schedule to the Reserve Bank of India Act, 1934, including a CRAR of at least 3 per cent more than the minimum CRAR requirement applicable to the bank.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are an IT/Systems lead at a bank this circular applies to (Rural Co-operative Banks (for display requirements), State Co-operative Banks (StCBs) (for Second Schedule norms), Regional Offices of the Reserve Bank of India, NABARD), your first concrete step on “RBI Directives for Rural Co-operative Banks” is: “Display the full name of the bank in all stationery items, publicity materials, websites, mobile applications, advertisements, and name boards.” (RBI issued this 04 Dec 2025).

  1. Circular: RBI/DOR/2025-26/123 -- RBI Directives for Rural Co-operative Banks
  2. Issued: 04 Dec 2025
  3. Action required: Display the full name of the bank in all stationery items, publicity materials, websites, mobile applications, advertisements, and name boards.
  4. Action required: Ensure that the full name as appearing in the banking licence is also shown along with the abbreviated/abridged name/logo in all publicity materials/stationery.
  5. Action required: For StCBs: Adhere to the norms for inclusion in the Second Schedule to the Reserve Bank of India Act, 1934, including a CRAR of at least 3 per cent more than the minimum CRAR requirement applicable to the bank.
  6. Owner: ____________ Target date: ____________
  7. Board/committee approval needed? Y / N
  8. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13190&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.
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