Union Minister of State for Finance Pankaj Chaudhary last week placed on the Table of the Lok Sabha copies of two statutory notifications issued under sub-section (5) of Section 52 of the Banking Regulation Act, 1949.
The papers laid before the House relate to the Banking Regulation (Companies) Amendment Rules, 2025 and the Banking Regulation (Co-operative Societies) Amendment Rules, 2025, notified in the Gazette of India on December 10, 2025, vide G.S.R. 890(E) and G.S.R. 891(E) respectively.
The Banking Regulation (Co-operative Societies) Amendment Rules, 2025 amend the Banking Regulation (Co-operative Societies) Rules, 1966 and provide for the introduction of a new definition of ineligible director in co-operative banks.
The rules also prescribe a transparent procedure through a draw of lots for identifying directors who shall cease to hold office where eligibility conditions are not met, omit certain outdated provisions, and revise reporting formats and timelines by replacing “alternate Fridays” with the 15th and last day of the month, with the objective of improving governance, transparency and regulatory compliance in the co-operative banking sector.