What changed
RBI notified that UBS AG's name was included in the Second Schedule to the RBI Act, 1934, via a notification dated February 6, 2009, published in the Gazette of India on February 21, 2009. This circular, issued on March 13, 2009, informs all scheduled commercial banks of this inclusion.
What it means for you
UBS AG now qualifies as a scheduled bank under Indian law, entitling it to facilities like access to RBI's liquidity windows and interbank market participation. For Indian banks, this means UBS AG is a recognized counterparty subject to RBI's prudential norms, impacting exposure limits and reporting.
What you must do
- Update your internal records to reflect UBS AG as a scheduled bank for regulatory reporting.
- Review exposure limits and counterparty risk assessments for UBS AG under RBI guidelines.
- Ensure compliance with SLR and CRR requirements if dealing with UBS AG as a scheduled bank.
Who it affects
All scheduled commercial banks in India, Foreign banks operating in India, Treasury and risk management departments
What does inclusion in the Second Schedule mean for UBS AG?
It grants UBS AG scheduled bank status, allowing it to access RBI's refinance facilities, participate in the interbank market, and be subject to RBI's regulatory framework for scheduled banks.
Does this circular require any immediate action from Indian banks?
Yes, banks should update their records to recognize UBS AG as a scheduled bank and ensure compliance with exposure and reporting norms applicable to such entities.
Is this notification still relevant today?
The notification is historical (2009), but it establishes UBS AG's scheduled bank status, which remains relevant for ongoing regulatory compliance and counterparty recognition.