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
- Update internal records to reflect State Bank of Indore's de-scheduled status for any interbank transactions or references.
- Review any outstanding exposures or relationships with State Bank of Indore and ensure compliance with closure procedures.
- Note this as a reference for understanding RBI's de-scheduling process in case of future bank exits.
Who it affects
All scheduled commercial banks, State Bank of Indore (now defunct), RBI's regulatory reporting systems
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.