The RBI has published third amendment directions for urban co-operative banks focusing on limiting customer liability in unauthorized electronic transactions. These measures enhance banking security.
Amendments for Urban Co-operative Banks
On June 24, 2026, the Reserve Bank of India (RBI) issued the 'Reserve Bank of India (Urban Co-operative Banks - Responsible Business Conduct) Third Amendment Directions, 2026'. This directive consolidates regulations for urban co-operative banks regarding customer liability in unauthorized electronic banking transactions.
The amendments reflect an increasing focus on consumer protection, ensuring that urban co-operative banks take necessary actions to safeguard their customers against fraud and unauthorized access to accounts.
For practitioners in the banking sector, these directives present implications for compliance, requiring banks to enhance their internal protocols involving customer account security and fraud prevention measures.
Citations
- Reserve Bank of India (Urban Co-operative Banks - Responsible Business Conduct) Third Amendment Directions (2026) RBI/2026-27/172
