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Bank of Rajasthan Removed from RBI Schedule II

Current · Source: Reserve Bank of India · RBI/2010-11/274 · issued 15 Nov 2010 · ~2 min read

Quick answerRBI has excluded The Bank of Rajasthan Limited from the Second Schedule of the RBI Act, 1934, effective August 18, 2010. This means it is no longer a scheduled commercial bank, impacting its regulatory status and access to central bank facilities.

The rule, in the simplest words

The Bank of Rajasthan Limited is no longer a scheduled commercial bank (a bank that meets RBI’s minimum requirements and gets special privileges).
Because it is not scheduled, it cannot use RBI’s liquidity facilities (the bank’s ability to borrow from the central bank) and loses its statutory status (official legal recognition).
Banks that do business with it must update their records, review any loans or transactions, and adjust their risk management to reflect the new status.
All regulatory reports to RBI must now show that the bank is non‑scheduled.
The change was announced by RBI on August 18, 2010 and communicated to all scheduled banks on November 15, 2010.

How it plays out — a real example

A compliance officer named Riya in Mumbai sees that The Bank of Rajasthan Limited is no longer scheduled. She updates the bank’s internal database, informs the risk team, and ensures all RBI reports list the bank as non‑scheduled, so the bank stays compliant.

What changed

RBI notified that The Bank of Rajasthan Limited was removed from the Second Schedule to the RBI Act, 1934, via a notification dated August 18, 2010, published in the Gazette of India from September 11-17, 2010. This exclusion was communicated to all scheduled commercial banks on November 15, 2010.

What it means for you

For banks, this means The Bank of Rajasthan Limited is no longer classified as a scheduled bank, losing privileges like access to RBI's liquidity facilities and statutory status. Lenders dealing with this bank must update their counterparty risk assessments and regulatory reporting, as it now operates as a non-scheduled entity.

What you must do

Update internal records to reflect Bank of Rajasthan's non-scheduled status for regulatory compliance.
Review any interbank exposures or transactions with Bank of Rajasthan and adjust risk management frameworks.
Ensure all reporting to RBI accurately reflects the bank's changed status in relevant schedules.
Communicate the change to relevant departments handling interbank operations and compliance.

Who it affects

Scheduled commercial banks with interbank dealings with Bank of Rajasthan, Compliance and risk management teams at all scheduled banks, Regulatory reporting departments

❓ Common questions

Regulatory timeline

Stated effective date effective August 18, 2010
Decoded by BankPulse 2026-06-19 03:44 IST

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

What does exclusion from the Second Schedule mean for a bank?

It loses scheduled bank status, meaning it no longer qualifies for certain RBI facilities like access to the liquidity adjustment facility and is not counted in statutory liquidity ratio calculations. It becomes a non-scheduled bank.

When did this exclusion take effect?

The exclusion was effective from August 18, 2010, as per the RBI notification. The Gazette publication occurred between September 11-17, 2010.

Do I need to update any regulatory filings because of this?

Yes, ensure that any reports or schedules referencing scheduled banks exclude Bank of Rajasthan. Also, update your internal systems to reflect its non-scheduled status for accurate compliance.

📜 Read the original circular — full text as issued by RBI

RBI/2010-11/274 

 Ref. DBOD.Ret..BC. No. 62/12.06.031/2010-11 

 November 15, 2010 

 All Scheduled Commercial Banks 

 Dear Sir,

 Exclusion from the Second Schedule to the Reserve Bank of India Act, 1934 – The Bank of Rajasthan Limited 

 We advise that the name of “The Bank of Rajasthan Limited” has been excluded from the Second Schedule to the Reserve Bank of India Act, 1934 by notification DBOD.No.PSBD/2866/16.01.056/2010-11 dated August 18, 2010 , published in the Gazette of India (Part III – Section-4) dated September 11, 2010 – September 17, 2010.

 Yours faithfully

 (P.K.Mahapatra)

 General Manager

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/274 · issued 15 Nov 2010. The plain-English explanation above is BankPulse’s own independent summary.

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Who does what — compliance checklist

⚙️ Operations

Communicate the change to relevant departments handling interbank operations and compliance.

📜 Compliance

Update internal records to reflect Bank of Rajasthan's non-scheduled status for regulatory compliance.
Review any interbank exposures or transactions with Bank of Rajasthan and adjust risk management frameworks.
Ensure all reporting to RBI accurately reflects the bank's changed status in relevant schedules.

Grouped from the action items above — a single circular may involve more than one team.

Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (Scheduled commercial banks with interbank dealings with Bank of Rajasthan, Compliance and risk management teams at all scheduled banks, Regulatory reporting departments), your first concrete step on “Bank of Rajasthan Removed from RBI Schedule II” is: “Update internal records to reflect Bank of Rajasthan's non-scheduled status for regulatory compliance.” (RBI issued this 15 Nov 2010).

Circular: RBI/2010-11/274 -- Bank of Rajasthan Removed from RBI Schedule II
Issued: 15 Nov 2010
Action required: Update internal records to reflect Bank of Rajasthan's non-scheduled status for regulatory compliance.
Action required: Review any interbank exposures or transactions with Bank of Rajasthan and adjust risk management frameworks.
Action required: Ensure all reporting to RBI accurately reflects the bank's changed status in relevant schedules.
Action required: Communicate the change to relevant departments handling interbank operations and compliance.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
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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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6100&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.