Scheduled Banks

Scheduled Banks

News: The Reserve Bank of India (RBI) has informed that Airtel Payments Bank Ltd. has been categorized as a Scheduled Bank. With this, the bank can now pitch for government-issued Requests for Proposals (RFP) and primary auctions.It can undertake both Central and State Government businesses participating in governmentoperated welfare schemes.

What are Scheduled Banks?
• Scheduled Banks refer to those banks which have been included in the Second Schedule of Reserve Bank of India Act, 1934.Reserve Bank of India (RBI) in turn includes only those banks in this Schedule which satisfy the criteria laid down vide section 42(6)(a) of the said Act.
• Every Scheduled bank enjoys two types of principal facilities: it becomes eligible for debts/loans at the bank rate from the RBI; and, it automatically acquires the membership of clearing house.
• Banks not under this Schedule are called Non-Scheduled Banks

Types of Scheduled Banks
There are two main categories of commercial banks in India namely:
• Scheduled Commercial banks
• Scheduled Co-operative banks
Scheduled commercial Banks are further divided into 5 types as below:
• Nationalised Banks
• Development Banks
• Regional Rural Banks
• Foreign Banks
• Private sector Banks
Payment bank (currently four banks Airtel Payments Bank, Fino Payments Bank, India Post Payments Bank, Paytm Payments Bank have been granted Scheduled bank status).
Scheduled Co-operative banks are further divided into 2 types namely:
• Scheduled State Co-operative banks
• Scheduled Urban Co-operative banks