Scheduled Banks in India refer to those banks which have been included in the Second Schedule of Reserve Bank of India Act, 1934.

Reserve Bank of India Reserve Bank of India, abbreviated as RBI, is the central bank of the Republic of India, and regulatory body responsible for regulation of the Indian banking system and Indian rupee, Indian currency. Owned by the Ministry of Finance (India), Min ...

(RBI) in turn includes only those banks in this Schedule which satisfy all 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 types of principal facilities: it becomes eligible for debts/loans at the

bank rate Bank rate, also known as discount rate in American English, and (familiarly) the base rate in British English, is the rate of interest which a central bank charges on its loans and advances to a commercial bank. The bank rate is known by a numb ...

from the RBI; and, it automatically acquires the membership of

clearing house Clearing house or Clearinghouse may refer to: Banking and finance * Clearing house (finance) * Automated clearing house * ACH Network, an electronic network for financial transactions in the U.S. * Bankers' clearing house * Cheque clearing * Cl ...

Types of banks

There are two main categories of scheduled banks in India, namely: * Scheduled

Commercial bank A commercial bank is a financial institution that accepts deposits from the public and gives loans for the purposes of consumption and investment to make a profit. It can also refer to a bank or a division of a larger bank that deals with whol ...

s * Scheduled Co-operative banks Scheduled commercial Banks are further divided into six types, as below: # Scheduled Public Sector Banks # Scheduled Private Sector Banks # Scheduled Small Finance Banks # Regional Rural Banks # Foreign Banks # Payment banks (currently five banks

Airtel Payments Bank Airtel Payments Bank is an Indian payments bank with its headquarters in New Delhi. The company is a subsidiary of Bharti Airtel. On 5 January 2022, it was granted the scheduled bank status by the Reserve Bank of India under the second schedul ...

, Fino Payments Bank, India Post Payments Bank, NSDL Payments Bank, Jio Payments Bank , Paytm Payments Bank(Paytm payment Bank restricted to deposit money in 2024) have been granted Scheduled bank status). Scheduled Co-operative banks are further divided into 2 types namely: # Scheduled State Co-operative banks #Scheduled Urban cooperative banks

Facilities

Types of banks

See also

References

Further reading