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Centurion Bank of Punjab Ltd removed from RBI Schedule II

Current · Source: Reserve Bank of India · RBI/2008-2009/199 · issued 29 Sep 2008 · ~1 min read
Quick answerRBI excluded Centurion Bank of Punjab Ltd from the Second Schedule of the RBI Act, 1934, effective May 23, 2008. This means the bank lost its scheduled bank status, impacting its regulatory privileges and obligations.
The rule, in the simplest words
How it plays out — a real example

A branch operations officer in Indore, Mr. Kumar, needs to update the bank's records to reflect Centurion Bank of Punjab Ltd's new status. He reviews all transactions with the bank and ensures that no new transactions rely on its scheduled status. Mr. Kumar also informs the treasury and risk departments about the status change to ensure compliance.

What changed

RBI notified that Centurion Bank of Punjab Ltd was removed from the Second Schedule to the RBI Act, 1934, effective May 23, 2008. The exclusion was formalized through a notification dated June 16, 2008, and published in the Gazette of India on July 19, 2008.

What it means for you

For lenders, this means Centurion Bank of Punjab Ltd ceased to be a scheduled bank, losing access to certain RBI facilities like liquidity adjustments and statutory privileges. Other banks should update their records and ensure no transactions rely on its scheduled status.

What you must do

Who it affects

All scheduled commercial banks, Centurion Bank of Punjab Ltd (now excluded), Banking operations teams handling interbank dealings

❓ 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?

It means the bank loses its scheduled bank status under the RBI Act, 1934, affecting its eligibility for certain central banking facilities and statutory requirements.

When did this exclusion take effect?

The exclusion was effective from May 23, 2008, as per the RBI notification.

Why was Centurion Bank of Punjab Ltd excluded?

The source does not specify the reason; it only states the exclusion was directed under Section 42(6)(b) of the RBI Act.

📜 Read the original circular — full text as issued by RBI
RBI/2008-2009/199 Ref: DBOD.No. Ret.BC. 50/12.06.094 /2008-09 September 29, 2008 All Scheduled Commercial Banks Dear Sir, Exclusion from the Second Schedule to the Reserve Bank of India Act, 1934 – Centurion Bank of Punjab Ltd We advise that the name of "Centurion Bank of Punjab Ltd" has been excluded from the Second Schedule to the Reserve Bank of India Act, 1934 by notification DBOD. No. PSBD. 17847/16.1.130/2007-08 dated June 16, 2008 , published in the Gazette of India (Part III - Section 4) dated July 19, 2008. Yours faithfully, (A. K. Singh) Deputy General Manager DBOD.No.PSBD17847/16.01.130/2007-08 June 16, 2008 NOTIFICATION In pursuance of Clause (b) of sub section (6) of Section 42 of the Reserve Bank of India Act, 1934 (2 of 1934), the Reserve Bank of India hereby directs exclusion with effect from May 23, 2008 from the Second Schedule to the said Act of the following bank, namely: "Centurion Bank of Punjab Ltd." (Anand Sinha) Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-2009/199 · issued 29 Sep 2008. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
💻 IT / Systems
  • Update internal systems to reflect Centurion Bank of Punjab Ltd as a non-scheduled bank.
📜 Compliance
  • Review any interbank exposures or transactions with this entity for compliance.
  • Inform relevant departments (treasury, risk, compliance) about the status change.
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, Centurion Bank of Punjab Ltd (now excluded), Banking operations teams handling interbank dealings), your first concrete step on “Centurion Bank of Punjab Ltd removed from RBI Schedule II” is: “Update internal systems to reflect Centurion Bank of Punjab Ltd as a non-scheduled bank.” (RBI issued this 29 Sep 2008).

  1. Circular: RBI/2008-2009/199 -- Centurion Bank of Punjab Ltd removed from RBI Schedule II
  2. Issued: 29 Sep 2008
  3. Action required: Update internal systems to reflect Centurion Bank of Punjab Ltd as a non-scheduled bank.
  4. Action required: Review any interbank exposures or transactions with this entity for compliance.
  5. Action required: Inform relevant departments (treasury, risk, compliance) about the 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=4508&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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