Non Scheduled banks
As per the Second Schedule of the Banking Regulation Act of 1965 a bank must satisfy the following conditions, to get fully authorized to run banking business in India. The required two conditions are:
- The bank should have paid a reserve capital of 5 lakh rupees to the Reserve Bank of India and this capital must be maintained throughout their operational period.
- The RBI must be satisfied that the banks affairs are not conducted in a manner that is harmful to the interest of its depositors.
Those banks that abide by this regulation are called as Scheduled Banks and banks that do not come under this regulation are called as Non-Scheduled Banks. All most all the existing banks in India are scheduled and the number of non-scheduled banks is almost nil. Only a countable number of few banking sectors have claimed exemption from the Second Schedule of banking Regulation Act. In the year 2006, only a total of three non-scheduled banks existed in India. By 2011 and counting, the number of non-scheduled banks in our country increased by one. Till today India has only four non-scheduled banks in existence. These four Non-scheduled banks under operation in India are:
- Akhand Anand Co-operative Bank Limited
- Alavi Co-Operative Bank Limited
- Amarnath Co-Operative Bank Limited
- Amod Nagrik Sahakari Bank Limited
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The article was very helpful to me as it helped me to understand the concept on non-scheduled banks. The articles is synchronous with the flow of the concept and is well versed. The writer was smart enough to write about the important points. A little elaboration would have been helpful.
I knew that the banks were categorized in some ways. But this term ‘non-scheduled ‘and ‘scheduled ‘ banks are new to me. The article emphasized more of the scheduled banks in respect to non-scheduled banks. The question arises so why does these bank operate? Do they help the economy or growth of the country?
This was a new concept for me , I am not familiar wth banking terminology and would like to know more about them , thanks for this informative article. The question is why do non -scheduled banks exist? they could operate in a way that could be harmful to their customers. Please throw some light on this question. I would appreciate it.
Thank you for this article. It´s good to know, where our hard earned money is going and if it´s going to be used for some shady purposes. Bank should stand for an ultimately safe institution, but unfortunately, that is not always the case. A warning like this is a very welcomed thing.