Bharat Overseas Bank Ltd Removed from RBI Second Schedule
Current · Source: Reserve Bank of India · RBI/2006-2007/397 · issued 17 May 2007 · ~2 min read
Quick answerRBI excluded Bharat Overseas Bank Ltd from the Second Schedule of the RBI Act, 1934, effective April 1, 2007, under Section 42(6)(b). This means the bank ceased to be a scheduled commercial bank, impacting its regulatory status and access to central bank facilities.
The rule, in the simplest words
RBI (India's central bank) removed Bharat Overseas Bank Ltd from a special list called the 'Second Schedule' starting April 1, 2007.
This means Bharat Overseas Bank is no longer a 'scheduled bank' (a bank that can borrow from RBI and follow special rules).
Other banks must update their records to show Bharat Overseas Bank is not a scheduled bank anymore.
Banks that had money or deals with Bharat Overseas Bank should check their past transactions and risk reports.
How it plays out — a real example
A compliance officer at a large bank in Mumbai reviews old interbank loan files and finds a loan given to Bharat Overseas Bank in 2006. She updates the system to mark Bharat Overseas Bank as 'non-scheduled' after April 1, 2007, so the loan is correctly classified for regulatory reporting.
What changed
RBI issued a notification on May 17, 2007, directing the exclusion of Bharat Overseas Bank Ltd from the Second Schedule of the RBI Act, 1934, effective from April 1, 2007. The exclusion was made under clause (b) of sub-section (6) of Section 42 of the Act.
What it means for you
The exclusion removes Bharat Overseas Bank Ltd from the Second Schedule of the RBI Act, 1934, meaning it is no longer classified as a scheduled bank under the Act.
What you must do
Review historical records to ensure any past transactions with Bharat Overseas Bank are correctly classified post-exclusion.
Update internal systems to reflect that Bharat Overseas Bank is no longer a scheduled bank for regulatory reporting purposes.
Monitor RBI notifications for similar exclusions that may affect counterparty risk assessments.
Who it affects
Bharat Overseas Bank Ltd (now excluded), Banks that had interbank exposures or transactions with Bharat Overseas Bank
❓ Common questions
Regulatory timeline
Stated effective dateeffective April 1, 2007
Decoded by BankPulse2026-06-19 16:48 IST
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 is no longer classified as a scheduled commercial bank under the RBI Act, 1934. This removes its eligibility for certain central bank facilities, like borrowing at the bank rate, and alters its reserve requirements.
Why was Bharat Overseas Bank excluded?
The notification does not specify the reason. It only states the exclusion was under Section 42(6)(b) of the RBI Act, effective April 1, 2007. Typically, such exclusions occur due to merger, liquidation, or voluntary surrender of scheduled status.
Does this notification affect current banking operations?
No, this is a historical notification from 2007. It is relevant for record-keeping and understanding past regulatory actions, but it does not impact current banking operations.
📜 Read the original circular — full text as issued by RBI
RBI/2006-2007/397
DBOD.BP.BC.No.
98 /21.01.002/2006-07
May
17, 2007
Exclusion Of Bharat Overseas Bank Ltd
In pursuance
of clause (b) of sub section (6) of Section 42 of Reserve Bank of India Act 1934
(2 of 1934), the Reserve Bank of India hereby directs exclusion with effect from
April 1, 2007 from the Second Schedule to the said Act of the following bank,
namely:
'The
Bharat Overseas Bank Ltd'
Anand
Sinha
Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2006-2007/397 · issued 17 May 2007. The plain-English explanation above is BankPulse’s own independent summary.
Monitor RBI notifications for similar exclusions that may affect counterparty risk assessments.
💻 IT / Systems
Update internal systems to reflect that Bharat Overseas Bank is no longer a scheduled bank for regulatory reporting purposes.
📜 Compliance
Review historical records to ensure any past transactions with Bharat Overseas Bank are correctly classified post-exclusion.
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 (Bharat Overseas Bank Ltd (now excluded), Banks that had interbank exposures or transactions with Bharat Overseas Bank), your first concrete step on “Bharat Overseas Bank Ltd Removed from RBI Second Schedule” is: “Review historical records to ensure any past transactions with Bharat Overseas Bank are correctly classified post-exclusion.” (RBI issued this 17 May 2007).
Circular: RBI/2006-2007/397 -- Bharat Overseas Bank Ltd Removed from RBI Second Schedule
Issued: 17 May 2007
Action required: Review historical records to ensure any past transactions with Bharat Overseas Bank are correctly classified post-exclusion.
Action required: Update internal systems to reflect that Bharat Overseas Bank is no longer a scheduled bank for regulatory reporting purposes.
Action required: Monitor RBI notifications for similar exclusions that may affect counterparty risk assessments.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
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.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
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=3522&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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