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The Reserve Bank of India (RBI) has issued the Urban Co-operative Banks – Branch Authorisation Directions, 2025, streamlining the framework governing the opening, shifting, and closure of branches by urban co-operative banks. The revised directions aim to simplify regulatory procedures while ensuring prudent expansion and effective supervisory oversight.

Under the updated framework, eligible banks may be granted greater operational flexibility based on their financial soundness, governance standards, and compliance track record. The directions also clarify approval requirements and reporting obligations, promoting consistency and transparency in branch-related decisions.

By refining the branch authorisation process, the RBI seeks to support the orderly growth of urban co-operative banks while safeguarding depositor interests. The move aligns with the central bank’s broader objective of strengthening governance, improving efficiency, and enhancing the resilience of the co-operative banking sector.