What changed
Unity Small Finance Bank Limited has been added to the Second Schedule of the RBI Act, 1934, via Notification DoR.LIC.No.S543/16.13.216/2022-23 dated April 28, 2022. The inclusion was published in the Gazette of India (Part III, Section 4) for July 2-8, 2022.
What it means for you
This formal recognition as a scheduled bank allows Unity Small Finance Bank to access RBI's liquidity windows, participate in government transactions, and enjoy enhanced credibility. For other banks, it signals a new competitor in the small finance space, potentially impacting deposit and lending dynamics.
What you must do
- Update your internal records to reflect Unity Small Finance Bank as a scheduled bank for interbank transactions.
- Review exposure limits and counterparty risk assessments for Unity Small Finance Bank in light of its new status.
- Monitor any changes in market competition or regulatory reporting requirements involving this bank.
Who it affects
All scheduled commercial banks, Small finance banks, Unity Small Finance Bank's counterparties and customers
What does inclusion in the Second Schedule mean for Unity Small Finance Bank?
It becomes a scheduled bank under the RBI Act, entitling it to borrow from RBI, access clearing houses, and enjoy statutory benefits like SLR and CRR treatment.
When did this inclusion take effect?
The notification was issued on April 28, 2022, and the Gazette publication occurred in July 2022, but the effective date is April 28, 2022.