What changed
RBI notified that Abu Dhabi Commercial Bank PJSC has been removed from the Second Schedule to the RBI Act, 1934, via a notification dated February 23, 2023, published in the Gazette of India in March 2023. This exclusion means the bank ceases to be a scheduled bank for regulatory purposes.
What it means for you
For Indian banks and lenders, this change means Abu Dhabi Commercial Bank PJSC loses the privileges and obligations of a scheduled bank, such as access to RBI's liquidity facilities and certain regulatory benefits. It may impact interbank transactions, reporting requirements, and the bank's status in India's banking ecosystem.
What you must do
- Update internal systems to reflect Abu Dhabi Commercial Bank PJSC as a non-scheduled bank.
- Review any exposure or transactions with this bank for compliance with non-scheduled bank norms.
- Communicate the change to relevant departments like treasury and risk management.
Who it affects
All banks in India, Treasury and risk management teams, Regulatory compliance departments
What does exclusion from the Second Schedule mean?
It means the bank is no longer classified as a scheduled bank under the RBI Act, losing access to certain RBI facilities and facing different regulatory treatment.
When did this exclusion take effect?
The exclusion was effective from the notification date of February 23, 2023, and was published in the Gazette of India in March 2023.
Does this affect existing transactions with Abu Dhabi Commercial Bank?
Existing transactions may need review for compliance, but the exclusion primarily changes the bank's regulatory status going forward.