In pursuance of clause (a) of sub section (6) of Section 42 of the Reserve Bank of India Act, 1934 (2 of 1934), the Reserve Bank of India hereby directs

## Policy Analysis Report: Inclusion of "The Vishweshwar Sahakari Bank Ltd., Pune" in the Second Schedule to the Reserve Bank of India Act, 1934 **1. Executive Summary:** This report analyzes a notification from the Reserve Bank of India (RBI) regarding the inclusion of "The Vishweshwar Sahakari Bank Ltd., Pune" in the Second Schedule to the Reserve Bank of India Act, 1934. This inclusion, mandated by Section 42(6)(a) of the Act, signifies the bank's eligibility for certain privileges and obligations under the Act. The key finding is that this amendment expands the scope of banks directly regulated by the RBI under the 1934 Act, impacting the banking sector and potentially enhancing financial stability. **2. Introduction:** This report aims to provide a detailed analysis of the Reserve Bank of India notification pertaining to the inclusion of "The Vishweshwar Sahakari Bank Ltd., Pune" in the Second Schedule to the Reserve Bank of India Act, 1934. The analysis is based solely on the provided text of the notification. **3. Policy Overview:** * **Amendment:** This notification acts as an amendment to the existing Reserve Bank of India Act, 1934. * **Core Objective:** Based on the provided text, the core objective of this amendment is to formally include "The Vishweshwar Sahakari Bank Ltd., Pune" within the regulatory framework of the Reserve Bank of India Act, 1934, specifically within the Second Schedule. **4. Background and Rationale:** The notification text suggests this is an amendment adding the bank to the list. The inclusion indicates that "The Vishweshwar Sahakari Bank Ltd., Pune" has met the criteria set by the RBI for inclusion in the Second Schedule. This likely involves meeting specific financial stability, operational efficiency, and regulatory compliance standards set by the RBI, making it eligible for certain advantages and subject to specific obligations under the RBI Act. **5. Key Provisions / Changes:** * **Specific Part of Original Policy Changed:** The notification directly impacts the Second Schedule of the Reserve Bank of India Act, 1934, by adding an entity to the schedule. * **New Rule/Provision:** The new provision is the inclusion of "The Vishweshwar Sahakari Bank Ltd., Pune" in the Second Schedule. * **Difference/Effect of Change:** This inclusion subjects "The Vishweshwar Sahakari Bank Ltd., Pune" to the provisions applicable to scheduled banks under the RBI Act, 1934. This likely entails maintaining a cash reserve ratio (CRR) with the RBI and potentially gives it access to borrowing and refinancing facilities from the RBI. The bank is now formally recognized and regulated under the purview of the RBI Act. **6. Target Audience and Stakeholders:** The primary stakeholders directly affected are: * **The Vishweshwar Sahakari Bank Ltd., Pune:** The bank is now subject to the regulations and benefits associated with being a scheduled bank. * **Reserve Bank of India (RBI):** The RBI assumes direct regulatory oversight of "The Vishweshwar Sahakari Bank Ltd., Pune" under the Act. * **Customers of The Vishweshwar Sahakari Bank Ltd., Pune:** Their deposits are now with a scheduled bank, potentially offering them more security (depending on deposit insurance and regulatory oversight). * **Other Scheduled Banks:** The competitive landscape may be affected by the inclusion of another entity in the scheduled banks list. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Reserve Bank of India is the responsible agency for implementing this change, specifically through its Department of Regulation (DoR), as indicated by "DoR.REG.LIC" in the notification reference. * **Timelines or Procedures:** No specific timelines or procedures are detailed in the provided text. However, it can be inferred that the inclusion is effective from the date of the notification (7th April, 2025). Further operational guidelines may be communicated separately by the RBI. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of this change is: * Enhanced regulatory oversight of "The Vishweshwar Sahakari Bank Ltd., Pune" by the RBI. * Improved financial stability and operational efficiency of the bank through adherence to RBI guidelines. * Potentially increased public confidence in the bank due to its scheduled bank status. * Integration of the bank more firmly into the Indian financial system. **9. Conclusion:** The inclusion of "The Vishweshwar Sahakari Bank Ltd., Pune" in the Second Schedule of the Reserve Bank of India Act, 1934, represents a significant regulatory step. It brings the bank under the direct purview of the RBI, ensuring compliance with regulatory norms and potentially contributing to greater financial stability. The notification serves to formally integrate the bank into the regulated banking framework of India.

Key Entities Referenced