What changed
The Reserve Bank of India included 'Industrial Development Bank of India Limited' in the Second Schedule to the RBI Act, 1934, effective from October 11, 2004. This followed the publication of Notification DBOD No. BP.BC.458/21.04.152/2004-05 dated September 30, 2004 in the Gazette of India on October 11, 2004.
What it means for you
IDBI now qualifies as a scheduled bank, gaining access to RBI liquidity facilities and interbank clearing. For other banks, this means IDBI is a regulated entity under RBI's supervisory purview, impacting interbank exposures and compliance requirements.
What you must do
- Update your internal records to reflect IDBI's scheduled bank status for regulatory reporting.
- Review interbank exposure limits with IDBI under prudential norms for scheduled banks.
- Ensure compliance with RBI's SLR and CRR requirements for transactions with IDBI as a scheduled bank.
Who it affects
All commercial banks in India, IDBI Ltd and its counterparties, RBI's supervisory and regulatory departments
What does inclusion in the Second Schedule mean for IDBI?
It grants IDBI scheduled bank status, making it eligible for RBI's liquidity support, access to the clearing house, and subject to RBI's regulatory framework including CRR and SLR requirements.
When did this change take effect?
The inclusion took effect from October 11, 2004, the date the notification was published in the Gazette of India.
Does this affect other banks' operations with IDBI?
Yes, other banks must now treat IDBI as a scheduled bank for interbank transactions, exposure limits, and regulatory compliance.