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Fincare Small Finance Bank Removed from RBI Schedule II

Current · Source: Reserve Bank of India · RBI/2024-25/38 · issued 24 May 2024 · ~2 min read

Quick answerRBI has excluded Fincare Small Finance Bank from the Second Schedule of the RBI Act, 1934, effective April 1, 2024, as it ceased banking operations. This means the bank is no longer a scheduled bank or a banking company under Indian law.

The rule, in the simplest words

Fincare Small Finance Bank is no longer a scheduled bank (a bank listed with the RBI) because it stopped doing banking business from April 1, 2024.
The RBI removed Fincare Small Finance Bank from its official list (Second Schedule) on April 1, 2024, and this was published in the government's newspaper (Gazette of India) on May 14, 2024.
Other banks must update their records to show that Fincare Small Finance Bank is not a bank anymore, and check any loans or money deals they have with it.
Treasury and risk teams (people who manage money and risks) must review and change any credit limits or payment arrangements with Fincare Small Finance Bank.

How it plays out — a real example

A treasury officer at a large bank in Mumbai checks her daily reports and sees that Fincare Small Finance Bank is now marked as 'non-bank' in the RBI list. She immediately updates her system to stop any new interbank loans to Fincare and reviews an existing settlement agreement to ensure no money is sent to them by mistake, protecting her bank from regulatory issues.

What changed

Fincare Small Finance Bank Limited has been removed from the Second Schedule to the RBI Act, 1934, effective April 1, 2024. This follows its cessation of banking business from the same date, as notified earlier by RBI. The exclusion was published in the Gazette of India on May 14, 2024.

What it means for you

For banks and lenders, this confirms that Fincare Small Finance Bank is no longer a scheduled bank or a banking company, impacting any interbank exposures or regulatory treatment. Counterparties should update their records and review any credit or settlement arrangements with this entity. The move reflects a formal regulatory closure of its banking license.

What you must do

Update internal systems to reflect Fincare Small Finance Bank's exclusion from Schedule II and its non-banking status.
Review and adjust any interbank exposure, credit limits, or settlement arrangements with this entity.
Ensure compliance with regulatory reporting requirements regarding scheduled bank status changes.
Communicate the change to relevant departments like treasury, risk, and compliance.

Who it affects

All scheduled commercial banks, Small finance banks, Treasury and risk management teams, Regulatory compliance departments

❓ Common questions

Regulatory timeline

Stated effective date effective April 1, 2024
Decoded by BankPulse 2026-06-18 03:14 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?

It means the bank is no longer recognized as a scheduled bank under the RBI Act, 1934, losing associated privileges and obligations, including access to central bank facilities.

When did this change take effect?

The exclusion and cessation of banking business both took effect from April 1, 2024, as per RBI's notification.

Do we need to report this to RBI?

No specific reporting is required, but you must update your internal records and ensure any regulatory filings reflect the correct status of this entity.

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

RBI/2024-25/38
DOR.RET.REC.23/12.07.160/2024-25
 May 24, 2024
 All Banks
 Madam / Dear Sir,
 Exclusion of "Fincare Small Finance Bank Limited" from the Second Schedule to the Reserve Bank of India Act, 1934 and cessation as a banking company
 It is informed that "Fincare Small Finance Bank Limited" has been excluded from the Second Schedule to the Reserve Bank of India Act, 1934 with effect from April 01, 2024, as the bank has ceased to carry on banking business with effect from April 01, 2024 vide Notification DOR.HOL.No.S173/16-02-003/2024-25 dated April 08, 2024, which is published in the Gazette of India (Part III - Section 4) dated May 14, 2024.
 Yours faithfully,
 (Latha Vishwanath)
 Chief General Manager

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2024-25/38 · issued 24 May 2024. The plain-English explanation above is BankPulse’s own independent summary.

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Who does what — compliance checklist

⚙️ Operations

Review and adjust any interbank exposure, credit limits, or settlement arrangements with this entity.

💻 IT / Systems

Update internal systems to reflect Fincare Small Finance Bank's exclusion from Schedule II and its non-banking status.

📜 Compliance

Ensure compliance with regulatory reporting requirements regarding scheduled bank status changes.
Communicate the change to relevant departments like treasury, risk, and compliance.

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 (All scheduled commercial banks, Small finance banks, Treasury and risk management teams, Regulatory compliance departments), your first concrete step on “Fincare Small Finance Bank Removed from RBI Schedule II” is: “Update internal systems to reflect Fincare Small Finance Bank's exclusion from Schedule II and its non-banking status.” (RBI issued this 24 May 2024).

Circular: RBI/2024-25/38 -- Fincare Small Finance Bank Removed from RBI Schedule II
Issued: 24 May 2024
Action required: Update internal systems to reflect Fincare Small Finance Bank's exclusion from Schedule II and its non-banking status.
Action required: Review and adjust any interbank exposure, credit limits, or settlement arrangements with this entity.
Action required: Ensure compliance with regulatory reporting requirements regarding scheduled bank status changes.
Action required: Communicate the change to relevant departments like treasury, risk, and compliance.
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=12688&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.