What changed
RBI notified that Sumitomo Mitsui Banking Corporation has been added to the Second Schedule of the RBI Act, 1934, via a notification dated January 9, 2013, published in the Gazette of India on February 2, 2013. This inclusion makes it a scheduled bank under Indian law.
What it means for you
For Indian banks, this means Sumitomo Mitsui Banking Corporation now enjoys the benefits and obligations of a scheduled bank, including access to RBI's liquidity facilities and adherence to reserve requirements. Lenders dealing with this entity should note its enhanced regulatory standing and compliance with RBI norms.
What you must do
- Update internal records to reflect Sumitomo Mitsui Banking Corporation as a scheduled bank.
- Ensure any interbank transactions or exposures comply with scheduled bank norms.
- Monitor RBI circulars for any subsequent regulatory changes affecting this bank.
Who it affects
All scheduled commercial banks in India, Sumitomo Mitsui Banking Corporation, Regulatory compliance teams
What does inclusion in the Second Schedule mean for Sumitomo Mitsui Banking Corporation?
It means the bank is now recognized as a scheduled bank under the RBI Act, 1934, entitling it to borrow from RBI at the bank rate and requiring it to maintain CRR and SLR as per RBI norms.
When did this inclusion take effect?
The inclusion was effective from January 9, 2013, as per RBI's notification, and was published in the Gazette of India on February 2, 2013.
Does this change affect other banks' dealings with Sumitomo Mitsui?
Yes, other banks must now treat Sumitomo Mitsui as a scheduled bank, which impacts reserve requirements, interbank lending limits, and regulatory reporting.