A total of sixteen teams contested the league, including ten sides from the 1961-62 season, one club relegated from the 1961-62 Yugoslav First League and five sides promoted from the third tier leagues played in the 1961-62 season.
Borac Banja Luka were relegated from the 1961-62 Yugoslav First League after finishing in the 12th place of the league table and losing in the relegation play-offs against Sloboda.