Home › Circulars › RBI/2008-09/398

State Bank of Saurashtra Removed from RBI Schedule II

Current · Source: Reserve Bank of India · RBI/2008-09/398 · issued 03 Mar 2009 · ~1 min read
Quick answerRBI notified that State Bank of Saurashtra has been excluded from the Second Schedule of the RBI Act, 1934, effective from October 16, 2008. This means it is no longer a scheduled bank under RBI's purview.
The rule, in the simplest words
How it plays out — a real example

A treasury officer at XYZ Bank, named Rohan, opens the bank’s status list and sees that State Bank of Saurashtra has been removed from the RBI’s Second Schedule. He quickly updates the internal database, checks any pending interbank payments with that bank, and sends a friendly note to the credit team to review any related exposures. Rohan smiles, knowing he’s kept the bank compliant and risk‑free.

What changed

RBI advised all scheduled commercial banks that State Bank of Saurashtra's name was removed from the Second Schedule to the RBI Act, 1934. The exclusion was formalized via a notification dated October 16, 2008, published in the Gazette of India on November 22, 2008.

What it means for you

State Bank of Saurashtra ceases to be a scheduled bank, losing associated privileges like access to RBI's liquidity facilities and statutory reserve requirements. For other banks, this is a routine regulatory update with no direct operational impact, but it may affect interbank exposures or legacy accounts linked to that entity.

What you must do

Who it affects

All scheduled commercial banks, Treasury and operations teams handling interbank relationships, Legal and compliance departments tracking bank status changes

❓ 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 State Bank of Saurashtra?

It loses scheduled bank status, meaning it is no longer entitled to borrow from RBI at the bank rate or access other central bank facilities. It also no longer needs to maintain statutory reserves with RBI.

Does this circular affect other banks' operations?

No direct operational impact, but banks should update their records and review any exposures to State Bank of Saurashtra for regulatory or risk management purposes.

📜 Read the original circular — full text as issued by RBI
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No. Ret. BC. 111/12.06.007 /2008-09 March 03, 2009 All Scheduled Commercial Banks Dear Sir, Exclusion from the Second Schedule to the Reserve Bank of India Act, 1934 – State Bank of Saurashtra We advise that the name of "State Bank of Saurashtra" has been excluded from the Second Schedule to the Reserve Bank of India Act, 1934 by notification DBOD. No. Ret. BC. 49/12.06.007/2008-09 dated October 16, 2008, published in the Gazette of India (Part III - Section 4) dated November 22, 2008. Yours faithfully, (A. K. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/398 · issued 03 Mar 2009. The plain-English explanation above is BankPulse’s own independent summary.
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Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All scheduled commercial banks, Treasury and operations teams handling interbank relationships, Legal and compliance departments tracking bank status changes), your first concrete step on “State Bank of Saurashtra Removed from RBI Schedule II” is: “Update your internal records to reflect State Bank of Saurashtra's non-scheduled status.” (RBI issued this 03 Mar 2009).

  1. Circular: RBI/2008-09/398 -- State Bank of Saurashtra Removed from RBI Schedule II
  2. Issued: 03 Mar 2009
  3. Action required: Update your internal records to reflect State Bank of Saurashtra's non-scheduled status.
  4. Action required: Review any outstanding interbank transactions or exposures with State Bank of Saurashtra for compliance.
  5. Action required: Inform relevant departments (e.g., treasury, credit) about this change for risk assessment.
  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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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=4868&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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