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
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.