What changed
RBI notified that National Australia Bank's name was added to the Second Schedule under the RBI Act, 1934, via a notification dated January 9, 2012, published in the Gazette of India on February 4, 2012. This inclusion was communicated to all scheduled commercial banks on March 19, 2012.
What it means for you
For Indian banks, this means National Australia Bank is now recognized as a scheduled bank, eligible for RBI liquidity facilities and subject to statutory requirements like CRR/SLR. It also enhances its credibility in interbank transactions and regulatory compliance.
What you must do
- Update internal records to reflect National Australia Bank as a scheduled bank for regulatory reporting.
- Ensure compliance with RBI norms for transactions with scheduled banks, including CRR/SLR applicability.
- Review interbank exposure limits and risk management policies to include this new scheduled entity.
Who it affects
All scheduled commercial banks in India, National Australia Bank's India operations, RBI's regulatory and supervisory departments
What is the Second Schedule of the RBI Act?
It is a list of banks recognized as scheduled banks under the RBI Act, 1934, entitling them to borrow from RBI and subjecting them to certain statutory requirements.
Does this change affect existing banking operations with National Australia Bank?
Yes, it formalizes its scheduled bank status, which may impact interbank lending, reserve requirements, and regulatory treatment from the effective date.