What changed
RBI advised that Rupee Co-operative Bank Limited has been excluded from the Second Schedule to the RBI Act, 1934, vide Notification DoR.REG/LIC.No.S4847/07.12.000/2023-24 dated November 29, 2023, published in the Gazette of India (Part III - Section 4) dated December 26, 2023. The circular is dated February 15, 2024.
What it means for you
For Rupee Co-operative Bank, losing scheduled bank status means it can no longer access RBI's refinance facilities or participate in certain money market instruments. Other banks and lenders must treat this bank as a non-scheduled entity for regulatory reporting and exposure limits, potentially increasing counterparty risk.
What you must do
- Update your internal systems to reflect Rupee Co-operative Bank Limited as a non-scheduled bank for all regulatory and reporting purposes.
- Review any existing exposures or interbank transactions with this bank and reassess risk limits accordingly.
- Ensure compliance with RBI guidelines on dealings with non-scheduled banks, including higher provisioning if applicable.
Who it affects
Rupee Co-operative Bank Limited, All banks with interbank exposures to Rupee Co-operative Bank, Regulatory reporting teams at all banks
When did this exclusion take effect?
The exclusion was advised via a notification dated November 29, 2023, published in the Gazette of India on December 26, 2023, as per the RBI circular dated February 15, 2024.