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.