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Airtel Payments Bank designated as scheduled bank

  • IASbaba
  • January 5, 2022
  • 0
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Airtel Payments Bank designated as scheduled bank

Part of: Prelims and GS-III – Banking

Context  The Reserve Bank of India (RBI)  said Airtel Payments Bank Ltd. has been included in the Second Schedule to the Reserve Bank of India Act, 1934.

  • With this, the bank can now pitch for government-issued Requests for Proposals (RFP) and primary auctions and undertake both Central and State Government business.

What is a Schedule Bank?

  • 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. 
  • Banks not under this Schedule are called Non-Scheduled Banks.
  • Every Scheduled bank enjoys two types of principal facilities: it becomes eligible for debts/loans at the bank rate from the RBI; and, it automatically acquires the membership of clearing house.

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