What changed
RBI notified that Oriental Bank of Commerce and United Bank of India are excluded 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 per a prior notification published in the Gazette of India.
What it means for you
These two banks are no longer recognized as scheduled banks under the RBI Act, reflecting their merger into Punjab National Bank. For lenders, this simplifies regulatory reporting and counterparty identification, as these entities no longer exist as separate banking entities.
What you must do
- Update internal systems to remove OBC and United Bank of India from scheduled bank lists.
- Ensure all references in regulatory filings and interbank transactions reflect the merged entity (Punjab National Bank).
- Review any outstanding contracts or agreements referencing these banks and update counterparty details.
Who it affects
All banks and financial institutions in India, Regulatory compliance teams, Treasury and interbank operations departments
What is the effective date of this exclusion?
The exclusion is effective from April 1, 2020, the same date the banks ceased banking business.
Does this affect customers of OBC or United Bank of India?
No, this is a regulatory formality. Customers continue to be served by Punjab National Bank, the successor entity.
Why were these banks removed from the Second Schedule?
They were removed because they ceased to carry on banking business after being amalgamated into Punjab National Bank.