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LVB removed from RBI Second Schedule

Current · Source: Reserve Bank of India · RBI/2021-22/33 · issued 06 May 2021 · ~1 min read
Quick answerRBI has excluded Lakshmi Vilas Bank Ltd from the Second Schedule of the RBI Act, 1934, effective November 27, 2020. This means the bank is no longer a scheduled commercial bank, impacting its regulatory status and access to central bank facilities.
The rule, in the simplest words
How it plays out — a real example

A branch operations officer in Indore, working for a scheduled commercial bank, needs to update their records to reflect Lakshmi Vilas Bank Ltd's non-scheduled status. They review their interbank exposures and transactions with LVB to ensure compliance with the new regulatory status. This change affects their bank's regulatory filings and reports, which now exclude LVB from scheduled bank lists.

What changed

RBI notified that Lakshmi Vilas Bank Ltd was removed from the Second Schedule to the RBI Act, 1934, effective November 27, 2020. The exclusion was formalized via a notification published in the Gazette of India in January 2021.

What it means for you

For banks, this confirms LVB's exit from the scheduled bank list, which typically follows a merger or resolution. Lenders should update their records to reflect LVB's non-scheduled status for regulatory reporting and interbank transactions. This may affect any pending claims or exposures with LVB.

What you must do

Who it affects

All scheduled commercial banks, Treasury and operations teams handling interbank dealings, Regulatory compliance departments

❓ Common questions

Regulatory timeline

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

What does exclusion from the Second Schedule mean for LVB?

It means LVB is no longer a scheduled bank under the RBI Act, losing access to central bank facilities like liquidity adjustments and priority sector lending benefits.

When did this exclusion take effect?

The exclusion was effective from November 27, 2020, as per the RBI notification.

Do we need to update our records for past transactions with LVB?

Yes, for regulatory accuracy, update records to reflect LVB's non-scheduled status from the effective date, especially for reporting and compliance purposes.

📜 Read the original circular — full text as issued by RBI
RBI/2021-22/33 DoR.RET.REC.14/12.07.150/2021-22 May 06, 2021 All Banks Madam/Sir Exclusion of “Lakshmi Vilas Bank Ltd” from the Second Schedule to the Reserve Bank of India Act, 1934 We advise that the “ Lakshmi Vilas Bank Ltd ” has been excluded from the Second Schedule to the Reserve Bank of India Act, 1934 with effect from November 27, 2020 vide Notification DOR.PSBD.No.1849/16.01.067/2020-21 dated December 17, 2020, which is published in the Gazette of India (Part III - Section 4) dated January 16 – January 22, 2021. Yours faithfully (Sibo Nekhini) General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2021-22/33 · issued 06 May 2021. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
💻 IT / Systems
  • Update internal systems to reflect LVB as a non-scheduled bank from November 27, 2020.
📜 Compliance
  • Review any outstanding interbank exposures or transactions with LVB for compliance.
  • Ensure regulatory filings and reports exclude LVB from scheduled bank lists.
  • Communicate this change to relevant departments like treasury and risk management.
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 scheduled commercial banks, Treasury and operations teams handling interbank dealings, Regulatory compliance departments), your first concrete step on “LVB removed from RBI Second Schedule” is: “Update internal systems to reflect LVB as a non-scheduled bank from November 27, 2020.” (RBI issued this 06 May 2021).

  1. Circular: RBI/2021-22/33 -- LVB removed from RBI Second Schedule
  2. Issued: 06 May 2021
  3. Action required: Update internal systems to reflect LVB as a non-scheduled bank from November 27, 2020.
  4. Action required: Review any outstanding interbank exposures or transactions with LVB for compliance.
  5. Action required: Ensure regulatory filings and reports exclude LVB from scheduled bank lists.
  6. Action required: Communicate this change to relevant departments like treasury and risk management.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. 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=12087&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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