What changed
First Rand Bank Ltd was added to the Second Schedule of the RBI Act, 1934 via notification DBOD. IBD. No. 20525 /23.13.145/2008-09 dated June 12, 2009, published in the Gazette of India on July 11, 2009. The circular to all scheduled commercial banks was issued on August 3, 2009.
What it means for you
This inclusion means First Rand Bank Ltd now qualifies as a scheduled bank under Indian law, entitling it to borrow from RBI at the bank rate and access other central banking facilities. For other banks, it signals an expanded competitive landscape and potential interbank dealings with a new scheduled entity.
What you must do
- Update your internal records to reflect First Rand Bank Ltd as a scheduled commercial bank.
- Review any existing or planned correspondent banking relationships with First Rand Bank Ltd in light of its new status.
- Monitor RBI circulars for any further operational guidelines related to this inclusion.
Who it affects
All scheduled commercial banks in India, First Rand Bank Ltd, Banks with interbank exposure to First Rand Bank Ltd
What does inclusion in the Second Schedule mean for First Rand Bank Ltd?
It becomes a scheduled bank under the RBI Act, 1934, gaining eligibility for RBI liquidity facilities, lower reserve requirements, and enhanced credibility in the banking system.
Does this change affect other banks' regulatory obligations?
No direct change, but other banks must now treat First Rand Bank Ltd as a scheduled bank for interbank transactions and reporting purposes.