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Shivalik Small Finance Bank Added to RBI Schedule II

Current · Source: Reserve Bank of India · RBI/2021-22/68 · issued 07 Jul 2021 · ~1 min read
Quick answerRBI has included Shivalik Small Finance Bank in the Second Schedule of the RBI Act, 1934, effective June 15, 2021. This grants it scheduled bank status, enhancing its regulatory standing and access to central bank facilities.
The rule, in the simplest words
How it plays out — a real example

A compliance officer at a large scheduled bank in Mumbai receives the RBI circular. She updates the bank's internal system to mark Shivalik Small Finance Bank as a scheduled commercial bank, then reviews the credit policy to ensure the bank can now set higher exposure limits for interbank lending to Shivalik, making it easier for her team to process transactions with the new scheduled entity.

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

Who it affects

All scheduled commercial banks, Shivalik Small Finance Bank, Regulatory compliance teams, Interbank market participants

❓ 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 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.

📜 Read the original circular — full text as issued by RBI
RBI/2021-22/68 DoR.RET.REC.30/12.07.150/2021-22 July 07, 2021 All Scheduled Commercial Banks Dear Sir/Madam Inclusion of “Shivalik Small Finance Bank Limited” in the Second Schedule of the Reserve Bank of India Act, 1934 We advise that “Shivalik Small Finance Bank Limited” has been included in the Second Schedule to the Reserve Bank of India Act, 1934 vide Notification DoR.LIC.(Shivalik SFB).No.S159/16.13.223/2021-22 dated June 15, 2021 and published in the Gazette of India ( Part III - Section 4 ) dated July 03-July 09, 2021. Yours faithfully (Sibo Nekhini) General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2021-22/68 · issued 07 Jul 2021. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
🏦 Branch Manager
  • Review counterparty exposure limits and credit policies to include this new scheduled entity.
💻 IT / Systems
  • Update your internal systems to recognize Shivalik Small Finance Bank as a scheduled commercial bank.
📜 Compliance
  • Ensure compliance with any regulatory reporting changes that reference scheduled banks.
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, Shivalik Small Finance Bank, Regulatory compliance teams, Interbank market participants), your first concrete step on “Shivalik Small Finance Bank Added to RBI Schedule II” is: “Update your internal systems to recognize Shivalik Small Finance Bank as a scheduled commercial bank.” (RBI issued this 07 Jul 2021).

  1. Circular: RBI/2021-22/68 -- Shivalik Small Finance Bank Added to RBI Schedule II
  2. Issued: 07 Jul 2021
  3. Action required: Update your internal systems to recognize Shivalik Small Finance Bank as a scheduled commercial bank.
  4. Action required: Review counterparty exposure limits and credit policies to include this new scheduled entity.
  5. Action required: Ensure compliance with any regulatory reporting changes that reference scheduled banks.
  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=12127&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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