Goa incorporates RBI Directions into Co-op Law thru’ Ordinance

In a major move to strengthen governance and regulatory oversight in the cooperative sector, the Goa Government has promulgated the Goa Co-operative Societies (Amendment) Ordinance, 2026, introducing sweeping reforms for cooperative banks, credit societies and housing cooperatives. The Ordinance has come into force with immediate effect as the Goa Legislative Assembly is not in session.

The biggest reform for cooperative banks is the alignment of Goa’s cooperative law with the Reserve Bank of India’s regulatory framework. Under the amended provisions, restrictions on members’ shareholding in cooperative banks will now be governed by RBI directions issued from time to time, replacing fixed statutory provisions with dynamic regulatory norms.

The Ordinance also strengthens the audit framework by making prior RBI approval mandatory for the appointment of statutory auditors. Additionally, the tenure of the same auditor has been capped at two consecutive years to ensure greater independence and improve audit quality.

The Ordinance also tightens supervision over cooperative credit institutions. Annual inspection of the books of accounts has been made mandatory for every cooperative credit society and other societies engaged in credit business.

The Registrar has also been empowered to order scrutiny of the affairs and accounts of such societies whenever considered necessary, strengthening regulatory oversight and ensuring timely detection of financial irregularities.

Governance standards have also been significantly enhanced. Every director must submit a self-declaration-cum-undertaking within 15 days of assuming office, failing which the office will automatically become vacant. Directors are required to annually disclose their assets, loan transactions and financial dealings with cooperative societies and banks. Newly elected directors must complete one week of cooperative management training within six months of election.

The Ordinance further strengthens accountability by empowering the Registrar to disqualify the entire board of a cooperative society for six years for serious statutory violations, including failure to hold annual general meetings, present audited accounts, file mandatory electronic returns or allowing disqualified directors to continue.

Auditors must report cases of mismanagement or misappropriation directly to the Registrar, while designated officers can order registration of an FIR in cases involving criminal breach of trust after obtaining the Registrar’s approval.