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
- Update internal systems to reflect Centurion Bank of Punjab Ltd as a non-scheduled bank.
- Review any interbank exposures or transactions with this entity for compliance.
- Inform relevant departments (treasury, risk, compliance) about the status change.
Who it affects
All scheduled commercial banks, Centurion Bank of Punjab Ltd (now excluded), Banking operations teams handling interbank dealings
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.