The scheduled bank meaning is defined under the Reserve Bank of India (RBI) Act 1934 as any bank listed in the Second Schedule of the Act. To earn this status, a bank must satisfy the criteria laid down in Clause 42 of the Act, one of which is that its paid-up capital and collected funds must not be less than Rs 5 lakh.
Once recognised as a scheduled bank, it becomes eligible for certain privileges. Like, it may borrow from the RBI at the bank rate and is granted membership of clearing-houses, thereby gaining access to a wider range of central bank facilities.
Scheduled banks include major entities such as public sector banks (for example, State Bank of India and its subsidiaries), nationalised banks, regional rural banks, and foreign banks operating in India, that meet the eligibility criteria.
These also include banks in the private sector, both new (HDFC Bank Ltd.) and old (Karur Vysya Bank).
In contrast, non-scheduled banks, those not listed in the Second Schedule, do not enjoy the full set of RBI privileges and usually represent smaller banking institutions or those not meeting the criteria for scheduling.
I hope you understood what is scheduled bank.
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What is Scheduled Bank?
ravi
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2025-10-30T17:49:37+00:00 2025-10-30T17:49:39+00:00Comment
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