What changed
RBI notified that JSC VTB Bank has been added to the Second Schedule of the RBI Act, 1934, via a notification dated July 30, 2008, published in the Gazette of India on September 19, 2008. This inclusion was communicated to all scheduled commercial banks through a circular dated December 16, 2008.
What it means for you
JSC VTB Bank now qualifies as a scheduled commercial bank under Indian law, entitling it to borrow from RBI at the bank rate and access other central banking facilities. For other banks, this means a new counterparty in interbank markets and regulatory reporting, with no direct operational impact.
What you must do
- Update your internal records to reflect JSC VTB Bank as a scheduled commercial bank.
- Ensure compliance with RBI reporting requirements for transactions with this bank.
- Monitor any future RBI circulars regarding JSC VTB Bank for operational guidelines.
Who it affects
All scheduled commercial banks in India, JSC VTB Bank (now a scheduled bank), RBI's regulatory and supervisory departments
What does inclusion in the Second Schedule mean for JSC VTB Bank?
It means JSC VTB Bank is now a scheduled commercial bank under the RBI Act, 1934, allowing it to access RBI's lending facilities and be subject to statutory reserve requirements.
When did this inclusion take effect?
The notification was issued on July 30, 2008, and published in the Gazette of India on September 19, 2008. The circular informing banks was sent on December 16, 2008.
Does this affect other banks' operations?
No direct operational impact, but other banks must recognize JSC VTB Bank as a scheduled bank for interbank transactions and regulatory compliance.