What changed
RBI notified that Australia and New Zealand Banking Group Limited has been added to the Second Schedule of the RBI Act, 1934, effective from June 7, 2011. The notification was published in the Gazette of India on July 9, 2011.
What it means for you
ANZ now qualifies as a scheduled bank under Indian law, entitling it to borrow from RBI at the bank rate and access other central banking facilities. For Indian banks, this means ANZ becomes a counterparty with the same regulatory standing, impacting interbank transactions and reserve requirements.
What you must do
- Update internal records to reflect ANZ's scheduled bank status for regulatory reporting.
- Review counterparty limits and exposure norms for ANZ as a scheduled bank.
- Ensure compliance with SLR and CRR requirements when dealing with ANZ.
Who it affects
Scheduled commercial banks in India, Australia and New Zealand Banking Group Limited, RBI's Department of Banking Operations and Development
What does inclusion in the Second Schedule mean for ANZ?
It means ANZ is now a scheduled bank under the RBI Act, eligible for RBI facilities like borrowing at the bank rate and maintaining statutory reserves.
Does this change affect how Indian banks should treat ANZ?
Yes, Indian banks must now treat ANZ as a scheduled bank for regulatory purposes, including exposure limits and reserve requirements.