What changed
RBI notified the inclusion of Sberbank in the Second Schedule to the RBI Act, 1934, via a notification dated March 8, 2011, published in the Gazette of India on April 2, 2011. The circular advising all scheduled commercial banks of this inclusion was issued on June 1, 2011.
What it means for you
Sberbank now qualifies as a scheduled bank under Indian law, meaning it must maintain cash reserve ratio (CRR) and statutory liquidity ratio (SLR) with RBI and is eligible for central bank facilities. For other banks, this expands the list of counterparties that are under RBI's regulatory umbrella, potentially affecting interbank transactions and exposure limits.
What you must do
- Update your internal records to reflect Sberbank as a scheduled bank for regulatory reporting and exposure purposes.
- Review any existing or planned interbank dealings with Sberbank to ensure compliance with scheduled bank norms.
- Monitor RBI circulars for any subsequent instructions regarding Sberbank's operations in India.
Who it affects
All scheduled commercial banks in India, Sberbank (now a scheduled bank), Banks with interbank exposure to Sberbank
What does inclusion in the Second Schedule mean for Sberbank?
It means Sberbank is now a scheduled bank under the RBI Act, 1934, and must follow CRR/SLR requirements, while gaining access to RBI's liquidity facilities and being subject to its regulatory oversight.
When did this inclusion take effect?
The notification was issued on March 8, 2011, and published in the Gazette of India on April 2, 2011. The circular advising banks was sent on June 1, 2011.
Does this affect how other banks should treat Sberbank?
Yes, as a scheduled bank, Sberbank is now eligible for certain regulatory benefits and must be treated accordingly in interbank transactions, exposure limits, and reporting.