What changed
RBI notified that Krung Thai Bank Public Company Limited has been removed from the Second Schedule of the RBI Act, 1934. The exclusion was formalized via Notification DoR.LIC.No.S1998/23.13.066/2024-25 dated July 3, 2024, and published in the Gazette of India (Part III - Section 4) from August 17-23, 2024.
What it means for you
This bank loses its scheduled bank status in India, which affects its eligibility for certain RBI facilities and privileges. Indian banks and co-operative banks dealing with Krung Thai Bank should review their exposure and ensure compliance with regulations for non-scheduled foreign banks.
What you must do
- Update your internal records to reflect Krung Thai Bank's non-scheduled status.
- Review any existing credit or correspondent banking relationships with Krung Thai Bank for regulatory implications.
- Ensure compliance with RBI guidelines applicable to transactions with non-scheduled foreign banks.
Who it affects
All commercial banks, All co-operative banks, Banks with correspondent relationships with Krung Thai Bank
What does exclusion from the Second Schedule mean?
It means the bank is no longer classified as a scheduled bank under the RBI Act, 1934, losing access to certain central bank facilities like liquidity support and priority in clearing.
When did this exclusion take effect?
The exclusion was effective from July 3, 2024, as per the RBI notification, and was published in the Gazette of India on August 17-23, 2024.