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Core Purpose

The Central Government, in consultation with the Reserve Bank of India, hereby amends the Banking Regulation (Co-operative Societies) Rules, 1966, through the Banking Regulation (Co-operative Societies) Amendment Rules, 2025.

Detailed Summary

The Ministry of Finance (Department of Financial Services) issued Notification G.S.R. 891(E) on December 10, 2025, in New Delhi, exercising powers conferred by section 52 read with clause (zj) of section 56 of the Banking Regulation Act, 1949 (10 of 1949). These new rules, titled the Banking Regulation (Co-operative Societies) Amendment Rules, 2025, come into force on December 15, 2025. They amend the Banking Regulation (Co-operative Societies) Rules, 1966, by inserting a new clause (aa) in rule 2 defining an "ineligible director" based on section 10-A(2) of the Act. A new rule 5-A is inserted, detailing the "Manners of determination of drawing of lots" for ineligible directors to cease holding office or be removed from the Board of Directors, as per sub-sections (3) and (5) of section 10-A of the Act, with procedures involving the Board of Directors and the Reserve Bank. Rule 11 of the principal rules is omitted. Furthermore, FORM I is amended to substitute "15th day of the month" and "Last day of the month" for alternate Fridays, omit "subsidiary banks and" while inserting "and IDBI Bank limited" in specific clauses, and revise clauses IX, XI, and XIII related to percentage calculations based on Reserve Bank notifications. Clause XIV in FORM I is updated to include "Amount deposited with the Reserve Bank, under Standing Deposit Facility Scheme." Various footnotes in FORM I are also modified. FORM IX is amended to replace "last Friday" with "last day * of the month" and adjust references to specific items and the State Bank of India in its clauses. The principal rules were initially published vide G.S.R. 1837, dated November 21, 1966, and have been subsequently amended by various notifications.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-10122025-268401 EXTRAORDINARY PART II-Section 3-Sub-section (i) PUBLISHED BY AUTHORITY No. 805] NEW DELHI, WEDNESDAY, DECEMBER 10, 2025/AGRAHAYANA 19, 1947 MINISTRY OF FINANCE (Department of Financial Services) NOTIFICATION New Delhi, the 10th December, 2025 G.S.R. 891(E). — In exercise of the powers conferred by section 52 read with clause (zj) of section 56 of the Banking Regulation Act, 1949 (10 of 1949), and after consultation with the Reserve Bank of India, the Central Government hereby makes the following rules further to amend the Banking Regulation (Co-operative Societies) Rules, 1966, namely:— 1. Short title and commencement. — (1) These rules may be called the Banking Regulation (Co-operative Societies) Amendment Rules, 2025. (2) They shall come into force on the 15th day of December, 2025. 2. In the Banking Regulation (Co-operative Societies) Rules, 1966, (hereinafter referred to as "the said rules”), in rule 2, after clause (a), the following clause shall be inserted, namely: - "(aa) "ineligible director" means a director who does not fulfil the requirements under clauses (a) and (b) of sub-section (2) of section 10-A of the Act."; 3. In the said rules, — (a)after rule 5, the following rule shall be inserted, namely: – "5-A. Manners of determination of drawing of lots of director or person who will cease to hold office or removed from the membership of Board of Directors. — (1) The Board of directors shall ascertain the number of director or directors out of the ineligible directors, who have to cease to hold the office, for the purpose of reconstitution of the Board of directors under sub- section (3) of section 10-A of the Act, as per sub-rule (3) of these rules. (2) The Reserve Bank shall ascertain the number of person or persons out of the ineligible directors, who are to be removed from the membership of Board of directors for the purpose of composition of the Board of directors in pursuance of sub-section (5) of section 10-A of the Act, as per sub-rule (3) of these rules. (3) The name of the director or directors and person or persons, as the case may be, who shall be ceased to hold office or removed from the membership of Board of directors, as the case may be, under sub-rule (1) and (2) shall be determined by drawing of lots from among the ineligible directors or the persons, as the case may be. (4) For the purposes of sub-rule (3), the following procedure shall be followed, namely: — (a) the names of the ineligible directors shall be grouped according to the period for which the directors have held office; (b) if there are two such groups only, the names of the directors in the group representing a shorter period of office shall be excluded; (c) if there are more than two such groups, the names of those in the group representing the shortest period of office shall be excluded: Provided that such exclusion under clauses (b) or (c) shall not be made if thereby the number of directors whose names are to be included in the draw is not more than the number determined under sub-rules (1) and (2). (5) The drawing of lots in pursuance of sub-section (3) of section 10-A of the Act shall be done by the Board of directors at a meeting of such Board. (6) The drawing of lots of the Reserve Bank under sub-section (5) of section 10-A of the Act shall be done by an officer of the Reserve Bank duly authorised in this behalf, and after giving a reasonable opportunity to the co-operative bank to nominate a director or officer of the co-operative bank to be present at the time of the drawing of lots." (b) rule 11 shall be omitted. (c) in FORM I, — (i) under the heading "As at the close of business on" for "First alternate Friday", "Second alternate Friday" and "Third alternate Friday", the following shall be substituted namely: – "15th day of the month" and "Last day of the month", respectively.”; (ii) in PART A, — (a) in clause I, in sub-clause (a) in item (i), the words “subsidiary banks and” shall be omitted and after the words "corresponding new banks", the words "and IDBI Bank limited" shall be inserted."; (b) in clause III, in sub-clause (a), the words “subsidiary banks and” shall be omitted and after the words "corresponding new banks”, the words “and IDBI Bank limited” shall be inserted."; (iii) in PART B, for clause IX, the following clause shall be substituted, namely:- "IX. Such per cent. of IV, as on the last day of the second preceding fortnight, as notified by the Reserve Bank.”; (iv) in PART C, for clause XI, the following clause shall be substituted, namely:- "XI. Such per cent. of IV, as on the last day of the second preceding fortnight, as notified by the Reserve Bank."; (v) in PART D, – (a) for clause XIII, the following clause shall be substituted, namely: - "XIII. Such per cent. of IV, as on the last day of the second preceding fortnight, as notified by the Reserve Bank."; (b) in clause XIV, after sub-clause (e), the following sub-clause shall be inserted, namely: - "(f) Amount deposited with the Reserve Bank, under Standing Deposit Facility Scheme."; (vi) after clause XIV, in the Foot Notes, — (a) in the foot note 2, for the words “an alternate Friday", the words, figures and letter “the 15th or the last day of the month", shall be substituted; (b) in the foot note 4$, serial number (ii) shall be omitted; (c) in the foot notes 5X, for the words "Industrial Development Bank of India", the words "the National Housing Bank, the Small Industries Bank" shall be substituted. (d) in FORM IX, — (i) for the words "on the last Friday" at both the places where they occurred the words "on the last day * of the month" shall be substituted.", (ii) in clause A, — (a) in sub-clause 4, in item (c), sub-item (iii) shall be omitted. (b) in sub-clause 5, in item (c), sub-item (iii) shall be omitted. (iii) in clause B, (a) in sub-clause 2, for item (b), the following item shall be substituted, namely: - "(b)with the State Bank of India."; (b) in sub-clause 3, for item(a), the following item shall be substituted, namely:- "(a)with the State Bank of India."; (c) in sub-clause 4, in item (g), for sub-item (i), the following sub-item shall be substituted, namely:- "(i) the State Bank of India." (d) for the word “Friday “, the word “day” shall be substituted.”. [F. No. 7/19/2023 (Part-II)-BOA-I] SHALINI PANDIT, Jt. Secy. Note: The principal rules were published vide number G.S.R. 1837, dated 21st November, 1966, in the Gazette of India, Part II, Section 3, Sub-section (i), vide dated 3rd December, 1966 and subsequently amended vide the Ministry of Finance Notifications mentioned below: — ------------------------------------------- Sl. Notification No. Date No. ------------------------------------------- 1. F.101/66-SB 18-10-1967 2. F. 18/No. 9/68-SB 30-10-1969 3. F.1-26/71/AC-II 23-5-1974 4. 8/18/77-AC 31-1-1979 5. 8(9)/80-AC 7-2-1983 6. F.1/22/84-B. O-I 29-3-1985 ------------------------------------------- Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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