The Reserve Bank of India (Urban Co-operative Banks – Compliance Function) Directions, 2026 provide a regulatory framework for establishing an effective compliance function in Urban Co-operative Banks (UCBs). The Directions require UCBs to implement a Board- approved compliance policy, conduct compliance risk assessments, and establish systems for monitoring, reporting, and managing regulatory compliance.
The Directions define the role of the Compliance Function, Chief Compliance Officer (CCO), cand Compliance Officer, ensuring independence, adequate resources, regulatory coordination, and accountability. They also promote technology-based compliance monitoring systems and repeal earlier compliance-related instructions applicable to UCBs.
