DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH

Name :P. Samba Murthy, HCCP

Designation :Head of Department
Branch :D.C.C.P.
Institute :SRRS Govt. Polytechnic, Sircilla.
Semester :V Semester
Subject :Banking – I
Subject Code :CCP – 504 (B)
Topic :Indian Banking Industry – Growth
Duration :50 minutes
Sub-Topic :Scheduled and Non-scheduled
Banks
Teaching Aids : PPT

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Objectives

On completion of this period, you would be

able to understand :
 Brief history of scheduled and non-scheduled
banks

 The definition of scheduled and non-scheduled

banks:

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 Recap

 Central bank is banker’s bank

 Lender of last resort
 Frame credit &monetary polices

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Statutory basics of bank classification

Commercial banks

Non-scheduled
Scheduled Banks
bank

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Definition of Scheduled banks:

 The banks can be classified as ‘scheduled banks’ and

‘non-scheduled banks’ based on their ‘scheduled
status’.
 A ‘schedule’ means a list.
 A ‘schedule bank’ is a status conferred on a
commercial bank and a state cooperative bank by the
Reserve Bank of India.
 The RBI will issue a notification when the banks are
included in its Second Schedule of the RBI Act 1934.

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 Definition of Scheduled banks:

 A commercial Bank has to satisfy the following

conditions in order to get a schedule status:
 The share capital and the reserves of a bank should
not be less than Rs.5.00 lakhs.
 The bank should function in the interest of the
depositors.

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 Definition of Scheduled banks:

 The institution must be a bank incorporated under

section 3 of the Indian Companies Act 1956 or a
corporation, or a company incorporated by or under
any law in force in any place outside India, or an
institution notified by the Central Government in this
behalf, or a State Cooperative Bank.

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Definition of Scheduled banks:

 Section 42(6) (a) of the Reserve Bank of India Act,

1934 contains eligibility Criteria to become a
scheduled bank.
 A scheduled bank is one which is included in the
second schedule of the R.B.I. Act.
 RBI has power to add any bank’s name in 2nd
schedule, if eligibility is fulfilled.

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SCHEDULED BANKS

All commercial banks- Indian and foreign,

regional, rural bank and state co-operative
banks – are scheduled banks

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SUMMARY

 A scheduled bank is included in the second scheduled

bank of RBI act,1934
 Schedule bank have certain privileges

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Frequently asked questions

1. Give the classification of banking institutions.

3. What are Scheduled Banks ?

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Quiz

1. Scheduled bank means:

 Central bank of country
 Bank in 2nd schedule of RBI Act
 Co-op bank
 None of the above

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Assignment
1. List out the names of some scheduled banks of
Indian origin

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