What changed
Airtel Payments Bank Limited was added to the Second Schedule of the RBI Act, 1934, via a notification dated December 2, 2021, published in the Gazette of India on January 1-7, 2022. This inclusion officially recognizes it as a scheduled bank under Indian banking law.
What it means for you
For Airtel Payments Bank, scheduled bank status brings eligibility for RBI liquidity facilities, lower reserve requirements, and enhanced trust among depositors and counterparties. For other banks, it means Airtel Payments Bank is now a regulated scheduled entity, impacting interbank transactions and reporting obligations.
What you must do
- Update internal systems to reflect Airtel Payments Bank as a scheduled bank for regulatory reporting and interbank dealings.
- Ensure compliance with RBI guidelines on transactions with scheduled banks, including SLR and CRR norms.
- Review any exposure limits or counterparty risk assessments involving Airtel Payments Bank.
Who it affects
Airtel Payments Bank Limited, All scheduled commercial banks, Payment system operators, RBI regulated entities dealing with payments banks
What does inclusion in the Second Schedule mean for Airtel Payments Bank?
It means the bank is now a scheduled bank under the RBI Act, entitling it to borrow from RBI, access clearing houses, and maintain lower reserve ratios, while being subject to stricter regulatory oversight.
Does this change affect other banks' reporting requirements?
Yes, other banks must now treat Airtel Payments Bank as a scheduled bank for purposes like CRR/SLR maintenance, interbank lending limits, and reporting to RBI.
When did this inclusion take effect?
The notification was issued on December 2, 2021, and published in the Gazette on January 1-7, 2022, making it effective from the notification date.