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Fino Payments Bank Added to RBI Schedule II

Current · Source: Reserve Bank of India · RBI/2020-21/102 · issued 22 Feb 2021 · ~1 min read
Quick answerRBI has included Fino Payments Bank Limited in the Second Schedule of the RBI Act, 1934, effective January 1, 2021. This grants it scheduled bank status, subjecting it to RBI's regulatory framework and enabling it to access central bank facilities.
The rule, in the simplest words
How it plays out — a real example

A compliance officer at a big bank in Mumbai will now need to update their records to show Fino Payments Bank as a scheduled bank, and review the rules for working with them, so they can make sure everything runs smoothly and follows the central bank's guidelines.

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

Who it affects

All scheduled commercial banks, Fino Payments Bank Limited, Payment system operators and participants

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

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.

📜 Read the original circular — full text as issued by RBI
RBI/2020-21/102 DOR.No.Ret.BC.43/12.07.150/2020-21 February 22, 2021 All Scheduled Commercial Banks Dear Sir/Madam Inclusion of “Fino Payments Bank Limited” in the Second Schedule of the Reserve Bank of India Act, 1934 We advise that “Fino Payments Bank Limited” has been included in the Second Schedule to the Reserve Bank of India Act, 1934 vide Notification DoR.NBD.No.2138/16.03.005/2020-21 dated January 01, 2021 and published in the Gazette of India ( Part III - Section 4 ) dated February 13 - February 19, 2021. Yours faithfully (S M Parida) General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2020-21/102 · issued 22 Feb 2021. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
🏦 Branch Manager
  • Review counterparty limits and exposure norms for transactions with Fino Payments Bank.
📜 Compliance
  • Update your internal records to reflect Fino Payments Bank as a scheduled commercial bank.
  • Ensure compliance with RBI guidelines on interbank dealings with scheduled banks.
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 (All scheduled commercial banks, Fino Payments Bank Limited, Payment system operators and participants), your first concrete step on “Fino Payments Bank Added to RBI Schedule II” is: “Update your internal records to reflect Fino Payments Bank as a scheduled commercial bank.” (RBI issued this 22 Feb 2021).

  1. Circular: RBI/2020-21/102 -- Fino Payments Bank Added to RBI Schedule II
  2. Issued: 22 Feb 2021
  3. Action required: Update your internal records to reflect Fino Payments Bank as a scheduled commercial bank.
  4. Action required: Review counterparty limits and exposure norms for transactions with Fino Payments Bank.
  5. Action required: Ensure compliance with RBI guidelines on interbank dealings with scheduled banks.
  6. Owner: ____________ Target date: ____________
  7. Board/committee approval needed? Y / N
  8. 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.

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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12034&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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