Executive Summary: Based on the Press Release dated August 06, 2026, the Reserve Bank of India has issued two draft Directions overhauling the regulatory framework for Rural Co-operative Banks (RCBs). These drafts—the Concentration Risk Management Directions, 2026, and the Credit Facilities Amendment Directions, 2026—aim to align RCB operations with broader prudential norms by restructuring exposure […]

1. Introduction & Background On August 5, 2026, the Reserve Bank of India (RBI) released draft guidelines proposing the resumption of ‘on tap’ licensing for Urban Co-operative Banks (UCBs). This marks a significant policy shift, ending a virtual freeze on new UCB licenses that had been in place since June 2004. The move follows improved

Elaborated Report: RBI Draft Guidance on Data Governance 1. Executive Summary With the rapid digitalization of the financial sector, the Reserve Bank of India (RBI) has issued the draft ‘Guidance on Regulatory Expectations for Data Governance’. This framework aims to ensure data remains accurate, secure, and fit for purpose, mitigating operational, compliance, and reputational risks.

The Reserve Bank of India (RBI) has issued a holistic framework to govern the rapidly expanding use of models (including AI/ML and third-party systems) across financial institutions. Recognising the financial, operational, compliance, and reputational risks of flawed models, the guidance mandates a robust Model Risk Management Framework (MRMF), strict lifecycle governance, independent validation, and enhanced