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State Bank of Indore Removed from RBI Second Schedule

Current · Source: Reserve Bank of India · RBI/2010-11/260 · issued 03 Nov 2010 · ~1 min read
Quick answerRBI has excluded State Bank of Indore from the Second Schedule of the RBI Act, 1934, effective August 26, 2010, as it ceased banking operations. This removes its scheduled bank status.
The rule, in the simplest words
How it plays out — a real example

A branch operations officer in Indore would no longer need to report to RBI about their transactions with State Bank of Indore, as it is no longer a scheduled bank. This change is routine and doesn't affect their daily work, but it's an important update to keep in mind. The officer will continue to work with other scheduled banks as usual.

What changed

RBI issued a notification on August 27, 2010, excluding State Bank of Indore from the Second Schedule to the RBI Act, 1934. The exclusion took effect from August 26, 2010, because the bank stopped carrying on banking business. The notification was published in the Gazette of India between September 25 and October 1, 2010.

What it means for you

State Bank of Indore is no longer a scheduled bank, losing associated privileges like access to RBI's liquidity facilities and statutory reporting requirements. For other banks, this is a routine regulatory update reflecting a merger or closure, with no direct operational impact. It underscores RBI's process for de-scheduling banks that cease business.

What you must do

Who it affects

All scheduled commercial banks, State Bank of Indore (now defunct), RBI's regulatory reporting systems

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Why was State Bank of Indore excluded from the Second Schedule?

It ceased to carry on banking business from August 26, 2010, likely due to merger or closure, prompting RBI to remove its scheduled bank status.

What does exclusion from the Second Schedule mean?

The bank loses scheduled bank status, meaning it no longer qualifies for certain RBI facilities like liquidity support and must follow different reporting norms.

Does this affect other banks' operations?

No direct impact on other banks, but they should update records and ensure no pending transactions with State Bank of Indore remain.

📜 Read the original circular — full text as issued by RBI
RBI/2010-11/260 DBOD. Ret. BC. No. 57/12.06.004/2010-11 November 03, 2010 All Scheduled Commercial Banks Dear Sir, Exclusion from the Second Schedule to the Reserve Bank of India Act, 1934 – State Bank of Indore. We advise that the name of “State Bank of Indore” has been excluded from the Second Schedule to the Reserve Bank of India Act, 1934 by notification DBOD. No. Ret. BC. 37/12.06.004/2010-11 dated August 27, 2010, published in Gazette of India (Part III – Section 4) dated September 25 – October 1, 2010. Yours faithfully, (Sujata Lal) Deputy General Manager DBOD.No.Ret.BC. 37 /12.06.004/2010-11 August 27,2010 NOTIFICATION In exercise of the powers conferred under 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 of the "State Bank of Indore" from the Second Schedule to the said Act, as the said bank has ceased to carry on banking business with effect from August 26, 2010. (Anand Sinha) Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/260 · issued 03 Nov 2010. The plain-English explanation above is BankPulse’s own independent summary.
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Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All scheduled commercial banks, State Bank of Indore (now defunct), RBI's regulatory reporting systems), your first concrete step on “State Bank of Indore Removed from RBI Second Schedule” is: “Update internal records to reflect State Bank of Indore's de-scheduled status for any interbank transactions or references.” (RBI issued this 03 Nov 2010).

  1. Circular: RBI/2010-11/260 -- State Bank of Indore Removed from RBI Second Schedule
  2. Issued: 03 Nov 2010
  3. Action required: Update internal records to reflect State Bank of Indore's de-scheduled status for any interbank transactions or references.
  4. Action required: Review any outstanding exposures or relationships with State Bank of Indore and ensure compliance with closure procedures.
  5. Action required: Note this as a reference for understanding RBI's de-scheduling process in case of future bank exits.
  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=6077&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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