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.
