Home › Circulars › RBI/2024-25/45

Nagar Urban Co-operative Bank Removed from RBI Schedule II

Current · Source: Reserve Bank of India · RBI/2024-25/45 · issued 25 Jun 2024 · ~1 min read

Quick answerRBI has excluded Nagar Urban Co-operative Bank from the Second Schedule of the RBI Act, 1934, effective April 1, 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

RBI took Nagar Urban Co-operative Bank out of the Second Schedule of the RBI Act on April 1, 2024, so it is no longer a Scheduled Bank.
Because it is not a Scheduled Bank, the bank cannot get refinance money from RBI or join some money‑market activities.
Other banks should look again at how much they are dealing with this co‑operative bank because its regulatory standing is now lower.
The removal was announced in a notification that was printed in the Gazette of India on May 14, 2024.

How it plays out — a real example

Rohit, a senior loan officer at Nagar Urban Co-operative Bank in Indore, checks his daily checklist and sees that the bank can no longer apply for RBI refinance. He gently tells his customers that new loan requests will be funded only from the bank's own resources and updates the credit team to monitor any extra risk.

What changed

RBI notified that Nagar Urban Co-operative Bank Limited was excluded from the Second Schedule of the RBI Act, 1934, via a notification dated April 1, 2024, published in the Gazette of India on May 14, 2024. This removal strips the bank of its Scheduled Bank status.

What it means for you

For Nagar Urban Co-operative Bank, losing Scheduled Bank status means it can no longer access RBI's refinance facilities or participate in certain money market operations. Other banks and lenders dealing with this co-operative bank should reassess their exposure and counterparty risk, as the bank's regulatory standing has diminished.

What you must do

Review the RBI notification for details; no specific actions mandated in source.

Who it affects

Nagar Urban Co-operative Bank Limited, All Commercial and Co-operative Banks (as per RBI circular addressees)

❓ Common questions

Regulatory timeline

Stated effective date effective April 1, 2024
Decoded by BankPulse 2026-06-18 03:06 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 Nagar Urban Co-operative Bank?

It loses its Scheduled Bank status, which means it can no longer avail RBI's refinance facilities, access the call money market as a borrower, or enjoy certain regulatory relaxations. It also affects its credibility and may trigger higher provisioning requirements for counterparties.

When did this exclusion take effect?

The exclusion was effective from April 1, 2024, as per the RBI notification. The Gazette publication occurred on May 14, 2024, and the circular was issued on June 25, 2024.

Should other banks take any immediate action?

Yes, banks with exposure to Nagar Urban Co-operative Bank should reassess credit limits, update risk classifications, and ensure compliance with RBI's prudential norms for dealing with non-Scheduled banks.

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

RBI/2024-25/45
 DoR.RET.REC.25/12.07.160/2024-25
 June 25, 2024
 All Commercial and Co-operative Banks
 Madam / Dear Sir,
 Exclusion of “Nagar Urban Co-operative Bank Limited” from the Second Schedule of the Reserve Bank of India Act, 1934
 It is advised that “Nagar Urban 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.S8/08.27.159/2024-25 dated April 1, 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/2024-25/45 · issued 25 Jun 2024. The plain-English explanation above is BankPulse’s own independent summary.

🧰 Tools — save, print, templates & related

Topics: Co-operative Banks

Most relevant forCompliance Team Senior Management / Board Risk Management Internal Audit Treasury Team / ALM

🛠 Banker’s toolkit — checklists & reply templates →

Key dataSee the live numbers behind this topic: RBI Penalty Tracker, NPA / Asset-Quality Tracker — updated from official RBI data.

Key termsPlain-English definitions of terms in this circular — see the full Indian banking glossary. KYC / AML · Gross NPA (GNPA) · Deposit insurance (DICGC) · Scheduled Commercial Bank (SCB)

Related circulars · Department of Regulation

SFB Pillar 3 Disclosure Norms Aligned with Basel UCB Deposit Rate Disclosure & Uniformity Rules Updated LAB Deposit Rate Disclosure & Uniformity Rules Tightened Payments Banks: Interest Rates Must Match Disclosed Schedule RBI Updates Bulk Deposit Rate Rules and Disclosure Timing

Browse all departments →

Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (Nagar Urban Co-operative Bank Limited, All Commercial and Co-operative Banks (as per RBI circular addressees)), your first concrete step on “Nagar Urban Co-operative Bank Removed from RBI Schedule II” is: “Review the RBI notification for details; no specific actions mandated in source.” (RBI issued this 25 Jun 2024).

Circular: RBI/2024-25/45 -- Nagar Urban Co-operative Bank Removed from RBI Schedule II
Issued: 25 Jun 2024
Action required: Review the RBI notification for details; no specific actions mandated in source.
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.

Loading comments…

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=12695&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.