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Sikkim State Co-operative Bank Gets Scheduled Bank Status

Current · Source: Reserve Bank of India · RBI/2021-22/174 · issued 18 Feb 2022 · ~1 min read
Quick answerRBI has added Sikkim State Co-operative Bank Ltd to the Second Schedule of the RBI Act, 1934, making it a scheduled bank. This grants it access to central bank facilities and regulatory benefits.
The rule, in the simplest words
How it plays out — a real example

A co-operative bank branch officer in Sikkim can now easily access liquidity facilities from RBI to manage their gold-loan portfolio, which will help them provide better services to their customers. This change will also boost the confidence of their customers in the bank's ability to manage their deposits and loans.

What changed

RBI notified that Sikkim State Co-operative Bank Ltd has been included in the Second Schedule to the RBI Act, 1934, effective from October 12, 2021, as published in the Gazette on January 18, 2022. This changes its status from non-scheduled to scheduled bank.

What it means for you

For Sikkim State Co-operative Bank, scheduled status means it can now borrow from RBI at the repo rate, access liquidity facilities, and enjoy enhanced credibility. For other co-operative banks, this signals RBI's continued recognition of well-managed state co-operative banks, potentially encouraging similar upgrades.

What you must do

Who it affects

Sikkim State Co-operative Bank, All State Co-operative Banks, All Central Co-operative Banks, Banks with interbank exposure to Sikkim State Co-operative Bank

❓ 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 a co-operative bank?

It means the bank is recognized as a scheduled bank under the RBI Act, 1934, entitling it to borrow from RBI, access clearing house facilities, and enjoy higher depositor confidence.

When did this change take effect for Sikkim State Co-operative Bank?

The inclusion was effective from October 12, 2021, with the official notification published in the Gazette on January 18, 2022.

Does this notification affect other co-operative banks directly?

No, it only applies to Sikkim State Co-operative Bank. However, it may serve as a benchmark for other state co-operative banks seeking scheduled status.

📜 Read the original circular — full text as issued by RBI
RBI/2021-22/174 DOR.RUR.REC.86/19.51.025/2021-22 February 18, 2022 All State Co-operative Banks/Central Co-operative Banks Madam/ Sir, Inclusion in the Second Schedule to the Reserve Bank of India Act, 1934- Sikkim State Co-operative Bank Ltd. We advise that the name of ‘Sikkim State Co-operative Bank Ltd.’ has been included in the Second Schedule to the Reserve Bank of India Act, 1934 vide notification DOR.RUR.No.S1627/19.51.025/2021-22 dated October 12, 2021 published in the Extraordinary Gazette of India (Part III - Section 4) dated January 18, 2022. Yours faithfully, (Neeraj Nigam) Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2021-22/174 · issued 18 Feb 2022. The plain-English explanation above is BankPulse’s own independent summary.
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Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (Sikkim State Co-operative Bank, All State Co-operative Banks, All Central Co-operative Banks, Banks with interbank exposure to Sikkim State Co-operative Bank), your first concrete step on “Sikkim State Co-operative Bank Gets Scheduled Bank Status” is: “Update your records to reflect Sikkim State Co-operative Bank as a scheduled bank for interbank transactions.” (RBI issued this 18 Feb 2022).

  1. Circular: RBI/2021-22/174 -- Sikkim State Co-operative Bank Gets Scheduled Bank Status
  2. Issued: 18 Feb 2022
  3. Action required: Update your records to reflect Sikkim State Co-operative Bank as a scheduled bank for interbank transactions.
  4. Action required: Review your exposure limits and risk weights for transactions with this bank, as scheduled status may affect regulatory treatment.
  5. Action required: Inform your treasury and compliance teams about this change for accurate reporting.
  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=12246&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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