What changed
Fino Payments Bank Limited was added to the Second Schedule of the RBI Act, 1934 via Notification DoR.NBD.No.2138/16.03.005/2020-21 dated January 1, 2021. The inclusion was published in the Gazette of India from February 13-19, 2021.
What it means for you
This formal recognition means Fino Payments Bank is now a scheduled bank, eligible for RBI liquidity facilities and subject to reserve requirements. For other banks, it becomes a regulated counterparty for interbank transactions and payment system operations.
What you must do
- Update your internal records to reflect Fino Payments Bank as a scheduled commercial bank.
- Review counterparty limits and exposure norms for transactions with Fino Payments Bank.
- Ensure compliance with RBI guidelines on interbank dealings with scheduled banks.
Who it affects
All scheduled commercial banks, Fino Payments Bank Limited, Payment system operators and participants
What does inclusion in the Second Schedule mean for Fino Payments Bank?
It becomes a scheduled bank under the RBI Act, gaining access to RBI's liquidity adjustment facility and other central bank services, while also being subject to statutory reserve requirements.
Does this change affect how other banks should treat Fino Payments Bank?
Yes, other banks should now treat it as a scheduled commercial bank for regulatory purposes, including exposure limits and interbank transactions.