What are "Scheduled Banks in India (Commercial & Co-operative)" ?
In december 2021, Paytm Payments Bank has been given the scheduled bank status by the Reserve Bank of India (RBI).
What are "Scheduled Banks 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.
Reserve Bank of India (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.
Every Scheduled bank enjoys two types of principal facilities:
1) it becomes eligible for debts/loans at the bank rate from the RBI; and,
2) it automatically acquires the membership of clearing house.
There are two main categories of commercial banks in India namely -
1) Scheduled Commercial banks
2) Scheduled Co-operative banks
Scheduled commercial Banks are further divided into 5 types as below -
1) Nationalised Banks
2) Development Banks
3) Regional Rural Banks
4) Foreign Banks
5) Private sector Banks
6) Payment bank
Currently four banks Airtel Payments Bank, Fino Payments Bank, India Post Payments Bank, Paytm Payments Bank have been granted Scheduled bank status.
Scheduled Co-operative banks are further divided into 2 types namely:
1) Scheduled State Co-operative banks
2) Scheduled Urban Co-operative banks