What changed
Andhra Bank and Corporation Bank were removed from the Second Schedule to the RBI Act, 1934, effective April 1, 2020. This follows their cessation of banking business from the same date, as notified earlier on March 27, 2020.
What it means for you
These banks are no longer recognized as scheduled banks under the RBI Act, reflecting their merger into other entities. For lenders, this simplifies regulatory reporting and reduces the number of counterparties in interbank transactions.
What you must do
- Update your records to reflect that Andhra Bank and Corporation Bank are no longer scheduled banks.
- Ensure any pending transactions or exposures with these entities are settled or transferred as per merger guidelines.
- Review and adjust any regulatory filings that reference these banks as separate entities.
Who it affects
All scheduled commercial banks, Regulatory compliance teams, Treasury and interbank operations departments
Why were Andhra Bank and Corporation Bank removed from the Second Schedule?
They ceased to carry on banking business from April 1, 2020, due to their merger into other banks, as per RBI's earlier notification.
Does this affect customer accounts or deposits in these banks?
No, customer accounts and deposits are unaffected as the merger transferred all assets and liabilities to the successor banks.