Scheduled Bank Status in India
The Bengaluru-headquartered small scale bank Jana Small Finance Bank Limited has received the status of a Scheduled Bank.
What are Scheduled Banks of India?
- The Scheduled Banks are the banks which are included in the Second Schedule of Reserve Bank of India Act, 1934.
- The Reserve Bank of India includes the banks in Second Schedule which adhere to all the criteria listed in section 42(6)(a) of Reserve Bank of India Act, 1934.
- All Indian Banks not listed under this Schedule are referred to as Non-Scheduled Banks.
Classification of The Scheduled banks
The Scheduled Banks in India are categorized into 2 separate heads –
- Scheduled Commercial Banks which comprise the Public Sector Banks like SBI, PNB etc and the Private Sector Banks like HDFC, ICICI etc.
- Scheduled Co-operative banks which include the Scheduled Rural and Urban co-operative banks.?
What are the advantages of Scheduled Banks of India?
All Scheduled bank listed in the RBI has two major benefits over the other banks.
- The banks become eligible for preferential debts/loans at the special bank rate from the RBI.
- The banks also attain the membership of clearinghouse facility.
A clearinghouse is a financial institution which has been formed to conveniently facilitate all exchanges of payments, securities, or derivatives transactions.
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