What changed
Shivalik Small Finance Bank Limited has been officially added to the Second Schedule of the Reserve Bank of India Act, 1934. The notification was issued on June 15, 2021, and published in the Gazette of India from July 3-9, 2021.
What it means for you
This inclusion grants Shivalik Small Finance Bank scheduled bank status, which improves its credibility and allows it to access RBI's liquidity and refinance facilities. For other banks, it means a new scheduled counterparty in interbank markets and regulatory reporting.
What you must do
- Update your internal systems to recognize Shivalik Small Finance Bank as a scheduled commercial bank.
- Review counterparty exposure limits and credit policies to include this new scheduled entity.
- Ensure compliance with any regulatory reporting changes that reference scheduled banks.
Who it affects
All scheduled commercial banks, Shivalik Small Finance Bank, Regulatory compliance teams, Interbank market participants
What does inclusion in the Second Schedule mean for Shivalik Small Finance Bank?
It means the bank is now a scheduled bank under the RBI Act, which enhances its regulatory status and allows it to access central bank facilities like liquidity support.
When did this inclusion take effect?
The notification was issued on June 15, 2021, and published in the Gazette of India between July 3 and July 9, 2021.
Do other banks need to take any action?
Yes, other scheduled commercial banks should update their systems and policies to reflect Shivalik Small Finance Bank's new scheduled status for counterparty and regulatory purposes.