Executive Summary:
This notification, issued by the Reserve Bank of India on November 14, 2013, concerns amendments to the Second Schedule of the Reserve Bank of India Act, 1934. It details the inclusion and exclusion of specific Regional Rural Banks (RRBs) from the schedule, as directed by the Act. The effective date of these changes is January 6, 2014.
Key Points / Main Content:
Inclusions to the Second Schedule:
The following Regional Rural Banks are included in the Second Schedule of the Reserve Bank of India Act, 1934:
Bihar Gramin Bank, Begusarai, Bihar
Himachal Pradesh Gramin Bank, Mandi, Himachal Pradesh
Central Madhya Pradesh Gramin Bank, Chhindwara, Madhya Pradesh
Madhyanchal Gramin Bank, Sagar, Madhya Pradesh
Narmada Jhabua Gramin Bank, Indore, Madhya Pradesh
Baroda Rajasthan Kshetriya Gramin Bank, Ajmer, Rajasthan
Gramin Bank of Aryavart, Lucknow, Uttar Pradesh
Uttarakhand Gramin Bank, Dehradun, Uttarakhand
Exclusions from the Second Schedule:
The following Regional Rural Banks are excluded from the Second Schedule of the Reserve Bank of India Act, 1934:
Bihar Kshetriya Gramin Bank, Munger, Bihar
Samastipur Kshetriya Gramin Bank, Samastipur, Bihar
Parvatiya Gramin Bank, Chamba, Himachal Pradesh
Himachal Gramin Bank, Mandi, Himachal Pradesh
Satpura Narmada Kshetriya Gramin Bank, Madhya Pradesh
Vidisha Bhopal Kshetriya Gramin Bank, Vidisha, Madhya Pradesh
Mahakaushal Kshetriya Gramin Bank, Narsinghpur, Madhya Pradesh
Madhya Bharath Gramin Bank, Sagar, Madhya Pradesh
Sharda Gramin Bank, Satna, Madhya Pradesh
Rewa Siddhi Gramin Bank, Rewa, Madhya Pradesh
Narmada Malwa Gramin Bank, Indore, Madhya Pradesh
Jhabua Dhar Kshetriya Gramin Bank, Jhabua, Madhya Pradesh
Hadoti Kshetriya Gramin Bank, Kota, Rajasthan
Baroda Rajasthan Gramin Bank, Rajasthan
Rajasthan Gramin Bank, Alwar, Rajasthan
Aryavart Gramin Bank, Lucknow, Uttar Pradesh
Kshetriya Kisan Gramin Bank, Mainpuri, Uttar Pradesh
Shreyas Gramin Bank, Aligarh, Uttar Pradesh
Nainital Almora Kshetriya Gramin Bank, Nainital, Uttarakhand
Uttaranchal Gramin Bank, Dehradoon, Uttarakhand
Impact Analysis:
Reserve Bank of India:
Impact: Responsible for implementing the changes to the Second Schedule of the Reserve Bank of India Act, 1934.
Action Required: Update the Second Schedule to reflect the inclusions and exclusions of the specified RRBs.
Regional Rural Banks (RRBs):
Impact: The included RRBs will now be subject to the provisions and benefits associated with being listed in the Second Schedule of the RBI Act. The excluded RRBs will no longer be subject to those provisions.
Action Required: RRBs should assess the implications of their inclusion or exclusion from the Second Schedule and adjust their operations accordingly.
Customers of RRBs:
Impact: Changes in the regulatory status of RRBs (inclusion/exclusion) can influence the operational scope, financial stability, and service offerings of the respective banks.
Action Required: Customers may need to stay informed about how these changes might affect their banking services.
Key Entities Referenced
Reserve Bank of India Act, 1934: A legislative act of India, cited as the legal basis for the notifications regarding Regional Rural Banks.
Second Schedule: Refers to the Second Schedule of the Reserve Bank of India Act, 1934, which lists eligible banks.
Bihar Gramin Bank, Begusarai, Bihar: A Regional Rural Bank in Begusarai, Bihar, included in the Second Schedule.
Himachal Pradesh Gramin Bank, Mandi, Himachal Pradesh: A Regional Rural Bank in Mandi, Himachal Pradesh, mentioned in both inclusion and exclusion notifications.
Central Madhya Pradesh Gramin Bank, Chhindwara, Madhya Pradesh: A Regional Rural Bank in Chhindwara, Madhya Pradesh, included in the Second Schedule.
Madhyanchal Gramin Bank, Sagar, Madhya Pradesh: A Regional Rural Bank in Sagar, Madhya Pradesh, included in the Second Schedule.
Narmada Jhabua Gramin Bank, Indore, Madhya Pradesh: A Regional Rural Bank in Indore, Madhya Pradesh, included in the Second Schedule.
Baroda Rajasthan Kshetriya Gramin Bank, Ajmer, Rajasthan: A Regional Rural Bank in Ajmer, Rajasthan, included in the Second Schedule.