Scheduled Banks in India are those banks which have been included in the Second Schedule of Reserve Bank of India (RBI) Act, 1934. Reserve Bank of India in turn includes only those banks in this schedule which satisfy the criteria mentioned on section 42 (6) (a) of the Reserve Bank of India Act 1934.
Criteria for a Scheduled Banks:
- Scheduled Banks are those banks whose minimum paid up capital and reserve and amount to 25 lakh.
- These bank have to submit details of their activities to the Reserve Bank of India every week.
- These banks are listed on the second schedule of the Reserve Bank of India Act 1934.
There are three types of Scheduled Bank in India and they are: -
- Public Sector Scheduled Banks in India
- Private Sector Scheduled Banks in India
- Foreign Scheduled Banks in India