Scheduled Banks (India)

Structure of the organised banking sector in India.

Scheduled Banks in India refer to those banks which have been included in the Second Schedule of Reserve Bank of India Act, 1934. RBI in turn includes only those banks in this Schedule which satisfy the criteria laid down vide section 42(6)(a) of the said Act. Banks not under this Schedule are called Non-Scheduled Banks.

Facilities

Every Scheduled bank enjoys two principal facilities: it becomes eligible for debts/loans at the bank rate from the RBI; and, it automatically acquires the membership of clearing house.^[1]

Internal Classification

The Scheduled banks comprise Scheduled Commercial Banks and Scheduled Co-operative banks. The further classification of is as follows:

• Scheduled Commercial banks
  • Public Sector Banks
    • State Bank of India and its associates, and
    • Other Nationalised banks
  • Private Sector Indian Banks
    • Old private-sector banks
    • New private-sector banks
  • Private-sector Foreign banks
  • Regional Rural Bank (RRBs)
• Scheduled Co-operative banks
  • Scheduled State Co-operative Banks
  • Scheduled Urban Co-operative Banks

See also

• Banking in India
• List of banks in India

References

Further reading

• "Reserve Bank of India Act, 1934: The Second Schedule" (PDF). Reserve Bank of India. p. 91-100.