The RBI (Urban Co-operative Banks – Miscellaneous) Supervisory Directions,
2026, issued on July 31, 2026, consolidate various supervisory requirements for
UCBs relating to technology, PCA framework, fair lending practices, nomination
facilities, fraud prevention, and vigilance.
The Directions mandate implementation of Core Banking Solution (CBS), establish
a Prompt Corrective Action (PCA) framework based on capital adequacy, asset
quality, and profitability parameters, and prescribe corrective measures for UCBs
based on risk thresholds. They also require adherence to fair interest charging
practices, mandatory nomination facilities, and enhanced fraud prevention measures
including internal controls, staff rotation, vigilance mechanisms, and reporting
requirements.
The framework strengthens governance through preventive vigilance, monitoring of
sensitive areas, and accountability measures. These Directions replace earlier
instructions on the covered subjects while protecting actions already taken under
previous provisions.
