What changed
RBI notified that Bharatiya Mahila Bank Limited has been included in the Second Schedule to the RBI Act, 1934, via a notification dated March 25, 2014, published in the Gazette of India on April 12, 2014. This formalizes its recognition as a scheduled commercial bank.
What it means for you
For banks, this means Bharatiya Mahila Bank now qualifies for RBI's liquidity facilities, statutory reserve benefits, and interbank market access as a scheduled entity. Lenders should update their counterparty lists and regulatory reporting to reflect this new scheduled bank status.
What you must do
- Update internal records to recognize Bharatiya Mahila Bank as a scheduled commercial bank.
- Adjust counterparty risk limits and interbank exposure frameworks accordingly.
- Ensure regulatory filings and reporting systems reflect this new scheduled bank entry.
Who it affects
All scheduled commercial banks, Treasury and risk management teams, Regulatory compliance departments
What does inclusion in the Second Schedule mean for Bharatiya Mahila Bank?
It grants scheduled bank status under the RBI Act, 1934, entitling the bank to access RBI's liquidity facilities, statutory reserve benefits, and participation in the interbank market as a scheduled entity.
When did this inclusion take effect?
The notification was issued on March 25, 2014, and published in the Gazette of India on April 12, 2014. The RBI circular communicating this was dated May 21, 2014.
Do other banks need to take any action?
Yes, banks should update their internal systems to reflect Bharatiya Mahila Bank as a scheduled commercial bank for regulatory reporting, counterparty risk management, and interbank dealings.