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
- Update internal systems to reflect Lord Krishna Bank Ltd as a non-scheduled bank.
- Review any interbank exposures or transactions with Lord Krishna Bank Ltd for compliance.
- Inform relevant departments (treasury, credit, operations) about this status change.
Who it affects
All scheduled commercial banks in India, Lord Krishna Bank Ltd and its counterparties, RBI's regulatory and supervisory divisions
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.