India, May 26 -- An individual cannot serve as a director continuously for more than 10 years on the board of Urban Co-operative Banks, and the re-appointment can happen only after a compulsory three-year cooling-off period, according to the RBI.

Amending the provisions, the Reserve Bank of India (RBI) on Monday said there have been instances where directors resorted to circumventing statutory provisions to continue on the boards of the UCBs.

In certain cases, the RBI said directors resigned briefly from office and got reelected/co-opted to the board within a short period, thereby continuing to be on the Board for an extended period beyond the legally permissible tenure.

The Reserve Bank of India (Urban Co-operative Banks - Governance)...