Rupee Co-operative Bank Removed from RBI Schedule II
Current · Source: Reserve Bank of India · RBI/2023-24/122 · issued 15 Feb 2024 · ~1 min read
Quick answerRBI has advised that Rupee Co-operative Bank Limited has been excluded from the Second Schedule of the RBI Act, 1934, via a notification dated November 29, 2023, published in the Gazette of India on December 26, 2023. This means the bank loses its scheduled bank status, impacting its access to central bank facilities and regulatory treatment.
This means the bank 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.
How it plays out — a real example
A co-operative bank branch officer in Indore, Mr. Kumar, needs to update the bank's internal systems to reflect Rupee Co-operative Bank Limited as a non-scheduled bank for all regulatory and reporting purposes. He also reviews any existing exposures or interbank transactions with this bank and reassesses risk limits accordingly, ensuring compliance with RBI guidelines on dealings with non-scheduled banks.
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
❓ Common questions
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.
📜 Read the original circular — full text as issued by RBI
RBI/2023-24/122
DOR.RET.REC.76/12.07.160/2023-24
February 15, 2024
All Banks
Madam / Dear Sir,
Exclusion of “Rupee Co-operative Bank Limited” from the Second Schedule to the Reserve Bank of India Act, 1934
It is advised that “Rupee Co-operative Bank Limited” has been excluded from the Second Schedule to the Reserve Bank of India Act, 1934 vide Notification DoR.REG/LIC.No.S4847/07.12.000/2023-24 dated November 29, 2023, which is published in the Gazette of India (Part III - Section 4) dated December 26, 2023.
Yours faithfully,
(Brij Raj)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2023-24/122 · issued 15 Feb 2024. The plain-English explanation above is BankPulse’s own independent summary.
Ensure compliance with RBI guidelines on dealings with non-scheduled banks, including higher provisioning if applicable.
💻 IT / Systems
Update your internal systems to reflect Rupee Co-operative Bank Limited as a non-scheduled bank for all regulatory and reporting purposes.
📜 Compliance
Review any existing exposures or interbank transactions with this bank and reassess risk limits accordingly.
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 (Rupee Co-operative Bank Limited, All banks with interbank exposures to Rupee Co-operative Bank, Regulatory reporting teams at all banks), your first concrete step on “Rupee Co-operative Bank Removed from RBI Schedule II” is: “Update your internal systems to reflect Rupee Co-operative Bank Limited as a non-scheduled bank for all regulatory and reporting purposes.” (RBI issued this 15 Feb 2024).
Circular: RBI/2023-24/122 -- Rupee Co-operative Bank Removed from RBI Schedule II
Issued: 15 Feb 2024
Action required: Update your internal systems to reflect Rupee Co-operative Bank Limited as a non-scheduled bank for all regulatory and reporting purposes.
Action required: Review any existing exposures or interbank transactions with this bank and reassess risk limits accordingly.
Action required: Ensure compliance with RBI guidelines on dealings with non-scheduled banks, including higher provisioning if applicable.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
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.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12608&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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