Home › Circulars › RBI/2007-2008/132

Sangli Bank Ltd Removed from RBI Second Schedule

Current · Source: Reserve Bank of India · RBI/2007-2008/132 · issued 07 Sep 2007 · ~2 min read
Quick answerRBI has excluded Sangli Bank Ltd from the Second Schedule of the RBI Act, 1934, effective May 14, 2007. This means the bank is no longer a scheduled commercial bank, impacting its regulatory status and access to central bank facilities.
The rule, in the simplest words
How it plays out — a real example

A credit-risk officer at a scheduled commercial bank in Mumbai reviews their interbank exposure list and sees Sangli Bank Ltd. She immediately updates the internal system to mark it as 'non-scheduled', then recalculates the risk weight for that exposure as per RBI guidelines for non-scheduled banks, ensuring her bank's regulatory reports are correct and no penalties arise.

What changed

RBI notified that Sangli Bank Ltd's name was removed from the Second Schedule to the RBI Act, 1934 via a notification dated May 14, 2007, published in the Gazette of India on June 2, 2007. This exclusion was communicated to all scheduled commercial banks on September 7, 2007.

What it means for you

Sangli Bank Ltd loses its scheduled bank status, which affects its eligibility for RBI liquidity facilities and certain regulatory benefits. For other banks, this serves as a reminder that scheduled status can be revoked, impacting interbank transactions and counterparty risk assessments.

What you must do

Who it affects

Sangli Bank Ltd, All scheduled commercial banks with interbank exposures to Sangli Bank Ltd, RBI's regulatory supervision team

❓ 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 Sangli Bank Ltd?

It means Sangli Bank Ltd is no longer a scheduled commercial bank under the RBI Act, 1934. This typically results in loss of access to RBI's liquidity adjustment facility, refinance, and other central bank privileges, and the bank must comply with different regulatory requirements.

Does this affect other banks' transactions with Sangli Bank Ltd?

Yes, other banks should treat Sangli Bank Ltd as a non-scheduled entity for regulatory purposes. This may impact capital adequacy calculations, exposure limits, and reporting under RBI norms.

When did this exclusion take effect?

The exclusion was effective from the date of the notification, May 14, 2007, and was published in the Gazette of India on June 2, 2007. RBI communicated this to banks on September 7, 2007.

📜 Read the original circular — full text as issued by RBI
RBI/2007-2008/132 Ref: DBOD. No. Ret.BC.31 /12.06.048 /2007-08 September 7, 2007 To All Scheduled Commercial Banks Dear Sir, Exclusion from the Second Schedule to the Reserve Bank of India Act, 1934 - The Sangli Bank Ltd We advise that the name of "The Sangli Bank Ltd" has been excluded from the Second Schedule to the Reserve Bank of India Act, 1934 by notification DBOD. No. PSBD. 11188/16.01.073/2006-07 dated May 14, 2007, published in the Gazette of India (Part III - Section 4) dated June 2, 2007. Yours faithfully, (Malvika. Sinha) General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-2008/132 · issued 07 Sep 2007. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Most relevant forCompliance TeamTreasury Team / ALMRisk ManagementCorporate / Wholesale Banking RMInternal AuditSenior Management / Board
🛠 Banker’s toolkit — checklists & reply templates →
Related circulars · Department of Regulation
SFB Pillar 3 Disclosure Norms Aligned with BaselUCB Deposit Rate Disclosure & Uniformity Rules UpdatedLAB Deposit Rate Disclosure & Uniformity Rules TightenedPayments Banks: Interest Rates Must Match Disclosed ScheduleRBI Updates Bulk Deposit Rate Rules and Disclosure Timing
Browse all departments →
Who does what — compliance checklist
🏦 Branch Manager
  • Update your internal records to reflect Sangli Bank Ltd's non-scheduled status for regulatory reporting and counterparty risk.
💰 Credit
  • Review any outstanding exposures or transactions with Sangli Bank Ltd and adjust risk weights or provisioning as per RBI guidelines for non-scheduled banks.
📜 Compliance
  • Communicate this change to relevant treasury and credit risk teams to ensure compliance with interbank lending norms.
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 Branch Manager at a bank this circular applies to (Sangli Bank Ltd, All scheduled commercial banks with interbank exposures to Sangli Bank Ltd, RBI's regulatory supervision team), your first concrete step on “Sangli Bank Ltd Removed from RBI Second Schedule” is: “Update your internal records to reflect Sangli Bank Ltd's non-scheduled status for regulatory reporting and counterparty risk.” (RBI issued this 07 Sep 2007).

  1. Circular: RBI/2007-2008/132 -- Sangli Bank Ltd Removed from RBI Second Schedule
  2. Issued: 07 Sep 2007
  3. Action required: Update your internal records to reflect Sangli Bank Ltd's non-scheduled status for regulatory reporting and counterparty risk.
  4. Action required: Review any outstanding exposures or transactions with Sangli Bank Ltd and adjust risk weights or provisioning as per RBI guidelines for non-scheduled banks.
  5. Action required: Communicate this change to relevant treasury and credit risk teams to ensure compliance with interbank lending norms.
  6. Owner: ____________ Target date: ____________
  7. Board/committee approval needed? Y / N
  8. 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.

Loading comments…
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=3806&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.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
—