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Lord Krishna Bank Removed from RBI Schedule II

Current · Source: Reserve Bank of India · RBI/2007-2008/164 · issued 23 Oct 2007 · ~1 min read
Quick answerRBI has excluded Lord Krishna Bank Ltd from the Second Schedule of the RBI Act, 1934, effective September 6, 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 treasury officer at a scheduled commercial bank in Mumbai receives the RBI circular and immediately updates the bank's internal system to mark Lord Krishna Bank Ltd as a non-scheduled bank. She then checks the interbank exposure report to ensure no new loans or deposits are made with Lord Krishna Bank under scheduled bank terms, and sends a quick email to the credit and operations teams about the change.

What changed

RBI notified that Lord Krishna Bank Ltd was removed from the Second Schedule of the RBI Act, 1934 through notification DBOD No. PSBD. 2536/16.01.130/2007‑08 dated 6 September 2007, and the change was published in the Gazette of India (Part III‑Section 4) on 19 September 2007.

What it means for you

For lenders, this means Lord Krishna Bank Ltd is no longer a scheduled bank, losing privileges like access to RBI's liquidity facilities and certain regulatory benefits. Other banks should update their records and ensure no transactions are treated as scheduled bank dealings with this entity.

What you must do

Who it affects

All scheduled commercial banks in India, Lord Krishna Bank Ltd and its counterparties, RBI's regulatory and supervisory divisions

❓ 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 commercial bank, which affects its eligibility for RBI's refinance facilities, statutory liquidity ratio (SLR) treatment, and other privileges under the RBI Act.

When did this exclusion take effect?

The exclusion was effective from September 6, 2007, as per the RBI notification, and was published in the Gazette of India on September 19, 2007.

Do other banks need to take any action?

Yes, other scheduled banks should update their records and ensure that any transactions with Lord Krishna Bank Ltd are handled appropriately, as it is no longer a scheduled bank.

📜 Read the original circular — full text as issued by RBI
RBI/2007-2008/164 Ref: DBOD.No.Ret.BC.36/12.06.043 /2007-08 October 23, 2007 All Scheduled Commercial Banks Dear Sir, Exclusion from the Second Schedule to the Reserve Bank of India Act, 1934 - Lord Krishna Bank Ltd We advise that the name of 'Lord Krishna Bank Ltd' has been excluded from the Second Schedule to the Reserve Bank of India Act, 1934 by notification DBOD. No. PSBD. 2536/16.01.130/2007-08 dated September 6, 2007, published in the Gazette of India (Part III - Section 4) dated September 19, 2007. Yours faithfully, (B.K.Biswas) Deputy General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-2008/164 · issued 23 Oct 2007. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
⚙️ Operations
  • Inform relevant departments (treasury, credit, operations) about this status change.
💻 IT / Systems
  • Update internal systems to reflect Lord Krishna Bank Ltd as a non-scheduled bank.
📜 Compliance
  • Review any interbank exposures or transactions with Lord Krishna Bank Ltd for compliance.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are an IT/Systems lead at a bank this circular applies to (All scheduled commercial banks in India, Lord Krishna Bank Ltd and its counterparties, RBI's regulatory and supervisory divisions), your first concrete step on “Lord Krishna Bank Removed from RBI Schedule II” is: “Update internal systems to reflect Lord Krishna Bank Ltd as a non-scheduled bank.” (RBI issued this 23 Oct 2007).

  1. Circular: RBI/2007-2008/164 -- Lord Krishna Bank Removed from RBI Schedule II
  2. Issued: 23 Oct 2007
  3. Action required: Update internal systems to reflect Lord Krishna Bank Ltd as a non-scheduled bank.
  4. Action required: Review any interbank exposures or transactions with Lord Krishna Bank Ltd for compliance.
  5. Action required: Inform relevant departments (treasury, credit, operations) about this status change.
  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.

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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=3895&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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