What changed
Westpac Banking Corporation was included in the Second Schedule to the Reserve Bank of India Act, 1934 via a notification dated December 10, 2012, published in the Gazette of India on January 12, 2013. This inclusion was communicated to all scheduled commercial banks by RBI on March 22, 2013.
What it means for you
For Indian banks, this means Westpac Banking Corporation is now recognized as a scheduled bank under Indian law, which brings it under RBI's regulatory oversight. It can now participate in interbank markets and access RBI's liquidity facilities, potentially increasing competition in corporate banking.
What you must do
- Update your internal records to reflect Westpac Banking Corporation's scheduled bank status.
- Review any existing or planned transactions with Westpac for compliance with RBI's regulatory requirements.
- Monitor Westpac's activities in India for potential impacts on your bank's business strategy.
Who it affects
All scheduled commercial banks in India, Westpac Banking Corporation's Indian operations, Corporate clients dealing with Westpac
What does inclusion in the Second Schedule mean for Westpac?
It means Westpac is now a scheduled bank under the RBI Act, 1934, subject to RBI's regulations and eligible for central bank facilities like liquidity support.
When did this inclusion take effect?
The notification was issued on December 10, 2012, and published in the Gazette on January 12, 2013. RBI communicated it to banks on March 22, 2013.
Does this affect other foreign banks in India?
No, this is specific to Westpac. Other foreign banks remain under their existing regulatory status unless separately notified.