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OBC and United Bank of India removed from RBI Schedule II

Current · Source: Reserve Bank of India · RBI/2020-21/46 · issued 30 Sep 2020 · ~1 min read
Quick answerRBI has formally removed Oriental Bank of Commerce and United Bank of India from the Second Schedule of the RBI Act, 1934, effective April 1, 2020, as they ceased banking operations on that date due to amalgamation.
The rule, in the simplest words
How it plays out — a real example

A branch operations officer in Indore, checking a customer's old passbook from Oriental Bank of Commerce, now knows that for any new loan or transaction, she must treat the customer as a Punjab National Bank account holder. She updates her system to remove OBC from the list of valid banks, ensuring all future reports and interbank transfers use the correct merged name.

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

Who it affects

All banks and financial institutions in India, Regulatory compliance teams, Treasury and interbank operations departments

❓ Common questions

Regulatory timeline

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

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.

📜 Read the original circular — full text as issued by RBI
RBI/2020-21/46 DOR.No.Ret.BC.19/12.07.150/2020-21 September 30, 2020 All Banks Madam/Sir Exclusion of “Oriental Bank of Commerce” and “United Bank of India” from the Second Schedule to the Reserve Bank of India Act, 1934 and cessation as banking company We advise that “Oriental Bank of Commerce” and “United Bank of India” have been excluded from the Second Schedule to the Reserve Bank of India Act, 1934 with effect from April 01, 2020 since they have ceased to carry on banking business with effect from April 01, 2020 vide Notification DOR.No.Ret.BC.56/12.01.001/2019-20 dated March 27, 2020, which is published in the Gazette of India (Part III - Section 4) dated September 26 – October 02, 2020. Yours faithfully (Sudhansu Mohan Parida) General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2020-21/46 · issued 30 Sep 2020. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
🏦 Branch Manager
  • Review any outstanding contracts or agreements referencing these banks and update counterparty details.
💻 IT / Systems
  • Update internal systems to remove OBC and United Bank of India from scheduled bank lists.
📜 Compliance
  • Ensure all references in regulatory filings and interbank transactions reflect the merged entity (Punjab National Bank).
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are an IT/Systems lead at a bank this circular applies to (All banks and financial institutions in India, Regulatory compliance teams, Treasury and interbank operations departments), your first concrete step on “OBC and United Bank of India removed from RBI Schedule II” is: “Update internal systems to remove OBC and United Bank of India from scheduled bank lists.” (RBI issued this 30 Sep 2020).

  1. Circular: RBI/2020-21/46 -- OBC and United Bank of India removed from RBI Schedule II
  2. Issued: 30 Sep 2020
  3. Action required: Update internal systems to remove OBC and United Bank of India from scheduled bank lists.
  4. Action required: Ensure all references in regulatory filings and interbank transactions reflect the merged entity (Punjab National Bank).
  5. Action required: Review any outstanding contracts or agreements referencing these banks and update counterparty details.
  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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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11974&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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