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Kapol Co-operative Bank Removed from RBI Schedule II

Current · Source: Reserve Bank of India · RBI/2024-25/14 · issued 05 Apr 2024 · ~2 min read

Quick answerRBI has excluded Kapol Co-operative Bank Limited from the Second Schedule of the RBI Act, 1934, effective February 22, 2024. This means the bank loses its scheduled bank status, impacting its access to central bank facilities and regulatory privileges.

The rule, in the simplest words

Kapol Co-operative Bank is no longer a scheduled bank (the special status that lets a bank borrow from RBI) as of February 22, 2024.
Without scheduled status it cannot use RBI’s liquidity facilities (like refinance) and may have to pay higher borrowing costs.
All banks must update their records to show Kapol Co-operative Bank as non‑scheduled and review any transactions with it for credit risk.
This change reminds all co‑operative banks to keep up with RBI rules to retain their scheduled status.

How it plays out — a real example

A treasury officer named Anjali at a commercial bank receives the RBI notice, updates the bank’s internal database to mark Kapol Co-operative Bank as non‑scheduled, and informs the risk team to reassess any loans the bank has extended to Kapol.

What changed

Kapol Co-operative Bank Limited was removed from the Second Schedule to the RBI Act, 1934, via a notification published in the Gazette of India on March 28, 2024. The exclusion was effective from February 22, 2024, and was communicated to all commercial and co-operative banks on April 5, 2024.

What it means for you

For Kapol Co-operative Bank, losing scheduled status means it can no longer access RBI's liquidity facilities, such as refinance, and may face higher borrowing costs. For other banks, this serves as a reminder that co-operative banks must maintain regulatory compliance to retain their scheduled status, affecting interbank transactions and depositor confidence.

What you must do

Update your internal records to reflect Kapol Co-operative Bank's non-scheduled status for regulatory reporting and interbank dealings.
Review any exposure or transactions with Kapol Co-operative Bank and assess credit risk implications.
Inform relevant departments (treasury, risk, compliance) about the change to ensure adherence to RBI guidelines.

Who it affects

Kapol Co-operative Bank Limited, All commercial banks, All co-operative banks, Depositors and creditors of Kapol Co-operative Bank

❓ Common questions

Regulatory timeline

Stated effective date effective February 22, 2024
Decoded by BankPulse 2026-06-18 03:29 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What does exclusion from the Second Schedule mean for Kapol Co-operative Bank?

It loses its scheduled bank status, which means it can no longer borrow from RBI under normal liquidity windows, and its deposits may not be considered for certain statutory purposes like SLR.

When did this exclusion take effect?

The exclusion was effective from February 22, 2024, as per the RBI notification, and was published in the Gazette on March 28, 2024.

How does this affect other banks?

Other banks should review their interbank exposures and ensure compliance with RBI norms for dealing with non-scheduled banks, as the status change may impact settlement and credit risk.

📜 Read the original circular — full text as issued by RBI

RBI/2024-25/14
 DOR.RET.REC.10/12.07.160/2024-25
 April 05, 2024
 All Commercial and Co-operative Banks
 Madam / Dear Sir,
 Exclusion of “Kapol Co-operative Bank Limited” from the Second Schedule to the Reserve Bank of India Act, 1934
 It is advised that “Kapol 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.S6720/07.12.000/2023-24 dated February 22, 2024, which is published in the Gazette of India (Part III - Section 4) dated March 28, 2024.
 Yours faithfully,
 (Manoranjan Padhy)
 Chief General Manager

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2024-25/14 · issued 05 Apr 2024. The plain-English explanation above is BankPulse’s own independent summary.

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Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (Kapol Co-operative Bank Limited, All commercial banks, All co-operative banks, Depositors and creditors of Kapol Co-operative Bank), your first concrete step on “Kapol Co-operative Bank Removed from RBI Schedule II” is: “Update your internal records to reflect Kapol Co-operative Bank's non-scheduled status for regulatory reporting and interbank dealings.” (RBI issued this 05 Apr 2024).

Circular: RBI/2024-25/14 -- Kapol Co-operative Bank Removed from RBI Schedule II
Issued: 05 Apr 2024
Action required: Update your internal records to reflect Kapol Co-operative Bank's non-scheduled status for regulatory reporting and interbank dealings.
Action required: Review any exposure or transactions with Kapol Co-operative Bank and assess credit risk implications.
Action required: Inform relevant departments (treasury, risk, compliance) about the change to ensure adherence to RBI guidelines.
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.

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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=12659&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.