Home › Circulars › RBI/2013-14/298

RBI reopens Second Schedule inclusion for UCBs with ₹750 crore DTL threshold

Current · Source: Reserve Bank of India · RBI/2013-14/298 · issued 27 Sep 2013 · ~2 min read
Quick answerRBI will now consider applications from Primary Urban Co-operative Banks for inclusion in the Second Schedule of the RBI Act, 1934, provided they meet a minimum DTL of ₹750 crore, 12% CRAR, three years of net profit, ≤5% gross NPAs, and full CRR/SLR compliance.
The rule, in the simplest words
How it plays out — a real example

Ravi, CEO of a mid-sized UCB in Pune, checks his bank's DTL—it's ₹820 crore for the past 14 months. He confirms CRAR at 13.5%, three years of profit, and NPAs at 3.8%. He then prepares the board resolution and audited statements, and submits two sets to the Mumbai Regional Office, confident his bank qualifies for scheduled status.

What changed

RBI had previously paused accepting applications for Second Schedule inclusion. This circular reverses that pause, allowing UCBs to apply again. A new financial threshold of ₹750 crore DTL (Demand and Time Liabilities) is introduced, along with stricter eligibility criteria.

What it means for you

Larger, healthier UCBs can now gain scheduled bank status, which enhances credibility and access to interbank markets. Banks below ₹750 crore DTL remain excluded. The criteria ensure only financially sound UCBs qualify, reducing regulatory risk.

What you must do

Who it affects

Primary (Urban) Co-operative Banks (UCBs), CEOs and compliance heads of UCBs, Regional Offices of RBI's Urban Banks Department

❓ Common questions

What is the minimum DTL required for a UCB to apply for Second Schedule inclusion?

The DTL must be at least ₹750 crore on a continuous basis for one year, based on assessed financials from inspection reports.

Does this circular apply to all UCBs immediately?

No, only UCBs that meet all the specified criteria—DTL, CRAR, profitability, NPA, and compliance—can apply. Others remain ineligible.

What documents are needed for the application?

A board resolution authorizing the application, three years' published balance sheets, and fortnightly DTL data for the last financial year, certified by a chartered accountant.

📜 Read the original circular — full text as issued by RBI
Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 61 kb ) Second Schedule to the Reserve Bank of India Act, 1934 – Norms for inclusion RBI/2013-14/298 UBD CO BPD (PCB) No.20/16.05.000/2013-14 September 27, 2013 The Chief Executive Officers of All Primary (Urban) Co-operative Banks Dear Sir, Second Schedule to the Reserve Bank of India Act, 1934 – Norms for inclusion Please refer to our circular UBD No. BPD 3/16.05.00/2004-05 dated July 13, 2004 on the captioned subject in terms of which UCBs were advised of our decision to not consider for the time being any application for inclusion in the Second Schedule of the Reserve Bank of India Act, 1934. 2. It has now been decided to consider applications from UCBs for inclusion in the Second Schedule to the Reserve Bank of India Act, 1934. We enclose a copy of the Government of India notification F.No.3/42/2011-AC dated April 29, 2013 published in the Gazette of India dated May 04, 2013 notifying that with effect from April 01, 2013, only such of the primary co-operative banks as are licensed and whose Demand and Time Liabilities (DTL) are not less than ` 750 crore would be treated as a ‘financial institution’ for the purpose of sub-clause (iii) of clause (a) of Sub-Section (6) of Section 42 of the Reserve Bank of India Act, 1934, i.e. for the purpose of inclusion of UCBs in the Second Schedule to the Reserve Bank of India Act, 1934. 3. UCBs desirous of seeking inclusion in the Second Schedule to the RBI Act, 1934 and fulfilling the following financial criteria based on the assessed financials as per inspection reports, viz. DTL of not less than ` 750 crore on a continuous basis for one year; CRAR of minimum 12%; Continuous net profit for the previous three years; Gross NPAs of 5% or less; Compliance with CRR / SLR requirements and No major regulatory and supervisory concerns may submit their application along with relevant documents (two sets) as detailed in the Annex , to the Regional Office concerned of Urban Banks Department. Yours faithfully, (A.K. Bera) Principal Chief General Manager Encl: as above Annex Documents to be submitted to Reserve Bank of India while applying for inclusion in the Second Schedule to the Reserve Bank of India Act, 1934 Copy of resolution passed by the Annual General Body / Board of Directors to make an application to RBI for inclusion in the Second Schedule to the Reserve Bank of India Act, 1934 and containing the name(s) of one / two officials authorized to correspond with RBI in this regard; Major financial details of the bank together with copies of the published balance sheet for the last three years and Fortnightly balance of Demand and Time Liabilities as on each reporting Friday for the last financial year, duly certified by a Chartered Accountant. 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn © Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/298 · issued 27 Sep 2013. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
💰 Credit
  • Verify CRAR is at least 12%, net profit for past three years, and gross NPAs at 5% or below.
💻 IT / Systems
  • Prepare application with board resolution, three years' audited balance sheets, and fortnightly DTL data certified by a CA.
📜 Compliance
  • Assess your bank's DTL on a continuous one-year basis to confirm it meets ₹750 crore threshold.
  • Ensure full compliance with CRR/SLR requirements and no major supervisory concerns.
  • Submit two sets of documents to the concerned Regional Office of Urban Banks Department.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (Primary (Urban) Co-operative Banks (UCBs), CEOs and compliance heads of UCBs, Regional Offices of RBI's Urban Banks Department), your first concrete step on “RBI reopens Second Schedule inclusion for UCBs with ₹750 crore DTL threshold” is: “Assess your bank's DTL on a continuous one-year basis to confirm it meets ₹750 crore threshold.” (RBI issued this 27 Sep 2013).

  1. Circular: RBI/2013-14/298 -- RBI reopens Second Schedule inclusion for UCBs with ₹750 crore DTL threshold
  2. Issued: 27 Sep 2013
  3. Action required: Assess your bank's DTL on a continuous one-year basis to confirm it meets ₹750 crore threshold.
  4. Action required: Verify CRAR is at least 12%, net profit for past three years, and gross NPAs at 5% or below.
  5. Action required: Ensure full compliance with CRR/SLR requirements and no major supervisory concerns.
  6. Action required: Prepare application with board resolution, three years' audited balance sheets, and fortnightly DTL data certified by a CA.
  7. Action required: Submit two sets of documents to the concerned Regional Office of Urban Banks Department.
  8. Owner: ____________ Target date: ____________
  9. Board/committee approval needed? Y / N
  10. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

💬 Banker Discussion

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BankPulse Compliance Evidence Pack — generated 27 Jul 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8471&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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