Quick answerThe RBI has officially placed NSDL Payments Bank Limited in the Second Schedule of the Reserve Bank of India Act, 1934, as per Notification No. RBI/2025-26/67 dated July 17 2025, following its Gazette publication on July 10 2025 (Source: RBI Notification).
What changed
NSDL Payments Bank Limited is now listed in the Second Schedule of the RBI Act, 1934. The inclusion was announced in a notification dated June 19 2025 and formally published in the Gazette of India on July 10 2025. This change is communicated to all banks as of July 17 2025.
What it means for you
Banks must treat NSDL Payments Bank as a scheduled entity under the RBI Act, affecting eligibility criteria for certain regulatory provisions and reporting obligations. The move may also broaden the scope for inter‑bank settlements and participation in RBI‑mandated schemes involving scheduled banks.
The rule, in the simplest words
NSDL Payments Bank is now a 'scheduled bank' (a bank listed in a special government list that gives it extra benefits and rules).
All other banks must treat NSDL Payments Bank like any other scheduled bank for things like loans between banks and reporting to the RBI.
Banks need to update their internal lists and computer systems to show NSDL Payments Bank's new status.
Compliance teams must add NSDL Payments Bank to their reports and settlement processes.
How it plays out — a real example
Ravi, a compliance officer at a large bank in Mumbai, gets an email about this rule. He opens his bank's list of scheduled banks and adds 'NSDL Payments Bank Limited' to it. Then he tells the treasury team to include NSDL Payments Bank in their daily inter-bank settlement reports, so everything stays correct with the RBI.
What you must do
Update your compliance registers to reflect NSDL Payments Bank’s scheduled status.
Amend internal policies and systems that reference the Second Schedule of the RBI Act.
Include NSDL Payments Bank in all relevant regulatory reporting and settlement processes.
Notify relevant departments (risk, treasury, compliance) of the change.
Who it affects
All banks, NSDL Payments Bank Limited, Regulatory reporting and compliance teams
When did NSDL Payments Bank become a scheduled bank?
The inclusion was effective after the Gazette of India published the notification on July 10 2025, as communicated in the RBI notice dated July 17 2025.
Do existing contracts with NSDL Payments Bank need revision?
Only contracts that specifically reference scheduled‑bank status may require review to align with the new classification.
What reporting changes are required?
All periodic returns that list scheduled banks must now include NSDL Payments Bank; ensure system updates to capture this entity.
📜 Read the original circular — full text as issued by RBI
RBI/2025-26/67
DoR.RET.REC.40/12.07.160/2025-26
July 17, 2025
All Banks,
Madam / Sir,
Inclusion of “NSDL Payments Bank Limited” in the Second Schedule of the Reserve Bank of India Act, 1934
It is advised that “NSDL Payments Bank Limited” has been included in the Second Schedule of the Reserve Bank of India Act, 1934 vide Notification DoR.LIC.No.S2196/16.13.215/2025-26 dated June 19, 2025 and published in the Gazette of India (Part III - Section 4) dated July 10, 2025.
Yours faithfully,
(Manoranjan Padhy)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2025-26/67 · issued 17 Jul 2025. The plain-English explanation above is BankPulse’s own independent summary.
Test yourself
Quick self-check built only from the facts already on this page — tap a question to reveal the answer.
Q1. In one line, what does this circular do?
The RBI has officially placed NSDL Payments Bank Limited in the Second Schedule of the Reserve Bank of India Act, 1934, as per Notification No. RBI/2025-26/67 dated July 17 2025, following its Gazette publication on July 10 2025 (Source: RBI Notification).
Q2. Who does this circular apply to?
All banks, NSDL Payments Bank Limited, Regulatory reporting and compliance teams
Q3. What is the first thing you should do about it?
Update your compliance registers to reflect NSDL Payments Bank’s scheduled status.
Include NSDL Payments Bank in all relevant regulatory reporting and settlement processes.
💻 IT / Systems
Amend internal policies and systems that reference the Second Schedule of the RBI Act.
📜 Compliance
Update your compliance registers to reflect NSDL Payments Bank’s scheduled status.
Notify relevant departments (risk, treasury, compliance) of the change.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (All banks, NSDL Payments Bank Limited, Regulatory reporting and compliance teams), your first concrete step on “NSDL Payments Bank added to RBI Act’s Second Schedule” is: “Update your compliance registers to reflect NSDL Payments Bank’s scheduled status.” (RBI issued this 17 Jul 2025).
Circular: RBI/2025-26/67 -- NSDL Payments Bank added to RBI Act’s Second Schedule
Issued: 17 Jul 2025
Action required: Update your compliance registers to reflect NSDL Payments Bank’s scheduled status.
Action required: Amend internal policies and systems that reference the Second Schedule of the RBI Act.
Action required: Include NSDL Payments Bank in all relevant regulatory reporting and settlement processes.
Action required: Notify relevant departments (risk, treasury, compliance) of the change.
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.
AI-drafted · AI fact-check pending · under the editorial review of our expert review panel · decoded & published by BankPulse · 06 Jul 2026, 17:16 IST
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12882&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert review panel. Independent platform, not affiliated with the Reserve Bank of India; never reproduces RBI text verbatim.
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