What changed
UBS AG has been added to the Second Schedule of the RBI Act, 1934, via Notification DoR.LIC.No.S1371/23.03.025/2024-25 dated June 4, 2024. The inclusion was published in the Gazette of India between August 17-23, 2024.
What it means for you
UBS AG is now a scheduled bank under Indian law, which may affect how Indian banks classify exposures and comply with regulatory norms. This could influence interbank transactions, capital adequacy calculations, and reporting requirements for lenders dealing with UBS AG.
What you must do
- Update internal records to reflect UBS AG as a scheduled bank for regulatory reporting.
- Review exposure limits and capital adequacy treatment for transactions with UBS AG.
- Ensure compliance with RBI guidelines on dealings with scheduled banks.
- Communicate this change to relevant treasury and risk management teams.
Who it affects
All commercial banks, All co-operative banks, Treasury departments, Risk management teams
What does inclusion in the Second Schedule mean for UBS AG?
It means UBS AG is now recognized as a scheduled bank under the RBI Act, 1934, which subjects it to certain regulatory benefits and obligations, including access to RBI facilities.
When did this inclusion take effect?
The notification was issued on June 4, 2024, and the inclusion was published in the Gazette of India on August 17-23, 2024.
Do Indian banks need to take any immediate action?
Yes, banks should update their systems to classify UBS AG as a scheduled bank and review any related regulatory compliance, such as exposure norms and reporting.