What changed
RBI added 8 new RRBs (e.g., Bihar Gramin Bank, Uttarakhand Gramin Bank) to the Second Schedule via notification RPCD.CO.RRB.BC.No.55/2013-14. Simultaneously, 20 pre-merger RRBs were removed via notification RPCD.CO.RRB.No.56/2013-14. Both notifications were published in the Extraordinary Gazette on January 6, 2014.
What it means for you
For banks, inclusion in the Second Schedule grants statutory recognition under the RBI Act, enabling access to central bank facilities and regulatory clarity. The exclusion of 20 erstwhile banks reflects the completion of amalgamation, requiring lenders to update their records and ensure compliance with the new legal entities.
What you must do
- Update internal systems and regulatory filings to reflect the 8 newly scheduled RRBs.
- Remove references to the 20 excluded RRBs from all official documents and databases.
- Notify regional offices and stakeholders about the effective date of these changes.
- Review any pending transactions or contracts involving the erstwhile RRBs for continuity.
Who it affects
Regional Rural Banks (RRBs), Sponsor banks of RRBs, RBI regional offices, Banking correspondents and partners of affected RRBs
What is the Second Schedule under the RBI Act?
It is the official list of banks recognized under Section 42 of the RBI Act, 1934. Inclusion grants them statutory status and access to central banking facilities like clearing and refinance.
Why were 20 RRBs excluded?
These banks were amalgamated into 8 new entities. Their names were removed from the Second Schedule to reflect the merger, as per the notification RPCD.CO.RRB.No.56/2013-14.
When did these changes take effect?
Both notifications were issued on November 14, 2013, and published in the Extraordinary Gazette on January 6, 2014. The effective date for inclusion/exclusion is November 14, 2013.