8/2/2019 2. Scheduled Banks

1/5

Scheduled Banks

8/2/2019 2. Scheduled Banks

2/5

Introduction

Scheduled Banks in India are those banks which have been includedin the Second Schedule of Reserve Bank of India(RBI) Act, 1934. It isimportant to know that RBI, includes only those banks in thisschedule which satisfy the criteria laid down vide section 42 (6) (a) of

the Act. As on 30th June, 1999, there were about 350 scheduled banks in

India having a total network of 75,000 branches. As per an estiamtethis number is 85000 as on date. The scheduled commercial banks inIndia comprise of State bank of India and its associates, nationalisedbanks, foreign banks, private sector banks, co-operative banks and

regional rural banks. Non-scheduled bank in India means a banking company as defined

in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of1949), which is not a scheduled bank.

Scheduled Bank is defined by Section 5(1) (m) of the BankingCompanies Act, 1949 as a bank for the time being included in theSecond Schedule to the Reserve Bank of India Act, 1934.

8/2/2019 2. Scheduled Banks

3/5

THE RESERVE BANK OF INDIA SCHEDULED

BANKS' REGULATIONS, 1951

A scheduled bank may from such date as may be intimated to itby the Bank in this behalf, keep an account at any office of theBanking Department of the Bank at a place where the

scheduled bank has an office or branch. A scheduled bank may keep an account at a branch of the Issue

Department of the Bank. for(a) the adjustment of credits anddebits with the Bank; (b) remittances to and from other officesof the Banking Department or branches of the IssueDepartment at which the said scheduled bank maintains an

account; (c) the adjustment of credits and debits with the localbranch of the State Bank

A scheduled bank shall submit to the principal office of theBank, a written statement containing required information.

8/2/2019 2. Scheduled Banks

4/5

Cont.

A scheduled bank which has a savings bank

department shall submit a copy of the regulations

governing that department to the principal office of

the Bank within the period prescribed by regulation A scheduled bank shall become liable to penalties

prescribed for non-compliance.

Scheduled Bank get certain facilities from RBI.

8/2/2019 2. Scheduled Banks

5/5

Ref. RBI Website