What changed
The Reserve Bank of India added Commonwealth Bank of Australia to the Second Schedule of the RBI Act, 1934, via notification dated March 19, 2010, published in the Gazette of India on April 10, 2010. This inclusion was communicated to all scheduled commercial banks through a circular dated June 3, 2010.
What it means for you
Commonwealth Bank of Australia now qualifies as a scheduled bank under Indian law, entitling it to borrow from RBI, access clearing houses, and maintain statutory reserves. For Indian banks, this means a new foreign bank entrant in the scheduled banking system, increasing competition in corporate and retail banking segments.
What you must do
- Update your internal records to reflect Commonwealth Bank of Australia as a scheduled bank for interbank transactions.
- Review any existing or planned correspondent banking relationships with this entity for compliance.
- Monitor competitive dynamics in foreign banking services, especially in trade finance and NRI segments.
Who it affects
All scheduled commercial banks in India, Commonwealth Bank of Australia (now a scheduled bank), Indian banking system participants dealing with foreign banks
What does inclusion in the Second Schedule mean for Commonwealth Bank of Australia?
It becomes a scheduled bank under the RBI Act, 1934, gaining access to RBI's lending facilities, clearing services, and the requirement to maintain CRR and SLR.
Does this change affect existing Indian banks?
Yes, Indian banks now have a new scheduled foreign bank counterparty, which may impact interbank lending, competition, and regulatory reporting.
When did this inclusion take effect?
The notification was issued on March 19, 2010, and published in the Gazette on April 10, 2010. The circular informing banks was dated June 3, 2010.