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United Western Bank removed from RBI Second Schedule

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Source: Reserve Bank of India · RBI/2006-2007/282 · issued 07 Mar 2007 · ~2 min read
Quick answerRBI excluded The United Western Bank Ltd from the Second Schedule of the RBI Act, 1934, effective November 25, 2006. This means the bank lost its scheduled bank status, impacting its regulatory standing and access to central bank facilities.
The rule, in the simplest words
How it plays out — a real example

A branch operations officer in Indore, Priya, receives a notice that United Western Bank Ltd is no longer a scheduled bank. She immediately checks her branch's interbank loan to that bank, updates the internal risk report to mark it as a non-scheduled counterparty, and advises her team to avoid new transactions until the bank's status is clarified.

What changed

RBI notified that The United Western Bank Ltd's name was removed from the Second Schedule to the RBI Act, 1934, effective November 25, 2006. The exclusion was based on a prior notification published in the Gazette of India on November 3, 2006.

What it means for you

For the banking system, this exclusion means the bank is no longer a scheduled commercial bank, losing privileges like access to RBI's liquidity facilities and clearing services. Lenders and counterparties should note that such a bank's regulatory status has changed, potentially affecting interbank transactions and deposit insurance coverage.

What you must do

Who it affects

Scheduled commercial banks, Depositors and creditors of United Western Bank Ltd, RBI-regulated entities with interbank exposures

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What does exclusion from the Second Schedule mean for a bank?

It means the bank loses its status as a scheduled bank under the RBI Act, 1934. This typically results in loss of access to RBI's liquidity facilities, clearing services, and certain regulatory benefits, and may affect deposit insurance coverage.

When did this exclusion take effect?

The exclusion was effective from November 25, 2006, which is the date the relevant notification was published in the Gazette of India.

Does this affect other banks' operations?

Yes, other banks should review any interbank exposures or transactions with United Western Bank Ltd, as its regulatory status has changed, potentially impacting settlement and credit risk.

📜 Read the original circular — full text as issued by RBI
RBI/2006-2007/282 DBOD. Ret. BC No. 67/12.06.051/2006-07 March 07, 2007 All Scheduled Commercial Banks Dear Sirs, Exclusion from the Second Schedule to the Reserve Bank of India Act,1934 - The United Western Bank Ltd We advise that the name of The United Western Bank Ltd has been excluded from the Second Schedule to the Reserve Bank of India Act, 1934 with effect from November 25, 2006, i.e. the date on which the relative notification DBOD. No. PSBD. 4146/16.01.076 /2006-07 dated November 3, 2006 was published in the Gazette of India (Part III - Section 4). Yours faithfully, (S.Oram) Deputy General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2006-2007/282 · issued 07 Mar 2007. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
🏦 Branch Manager
  • Monitor RBI notifications for similar exclusions that may impact your counterparty risk assessments.
📜 Compliance
  • Verify the current scheduled status of any bank you transact with, especially if it has undergone regulatory actions.
  • Update internal records to reflect that United Western Bank Ltd is no longer a scheduled bank for regulatory reporting.
  • Review any exposure or interbank arrangements with this bank to assess credit and operational risks.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (Scheduled commercial banks, Depositors and creditors of United Western Bank Ltd, RBI-regulated entities with interbank exposures), your first concrete step on “United Western Bank removed from RBI Second Schedule” is: “Verify the current scheduled status of any bank you transact with, especially if it has undergone regulatory actions.” (RBI issued this 07 Mar 2007).

  1. Circular: RBI/2006-2007/282 -- United Western Bank removed from RBI Second Schedule
  2. Issued: 07 Mar 2007
  3. Action required: Verify the current scheduled status of any bank you transact with, especially if it has undergone regulatory actions.
  4. Action required: Update internal records to reflect that United Western Bank Ltd is no longer a scheduled bank for regulatory reporting.
  5. Action required: Review any exposure or interbank arrangements with this bank to assess credit and operational risks.
  6. Action required: Monitor RBI notifications for similar exclusions that may impact your counterparty risk assessments.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=3317&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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