Scheduled banks are the ones covered in the second schedule of the Reserve Bank, whereas non-scheduled banks are the banks that are not covered in the second schedule of the Reserve Bank.
Scheduled Banks need to maintain cash reserves with RBI, at the rates prescribed by it. On the other hand, Non-Scheduled Bank also needs to keep cash reserves, but with themselves only. Scheduled banks are entitled to borrow money from the central bank for regular banking purposes. Conversely, non-scheduled banks are not entitled to borrow money from the central bank for regular banking purposes. Nevertheless, under abnormal conditions, they can request the central bank for accommodation.
Scheduled banks must submit the periodic returns to the Reserve bank of India. As against, there is no such requirement of submission of periodic returns to the central bank, in case of non-scheduled banks. Scheduled banks have the right to become the member in clearing house, while no such facility is allowed to non-scheduled banks.
Comments Very good information is provided in easy language But I want much more information related to pathapedhi What is the difference between pathapedhi and bank. Leave a Reply Cancel reply Your email address will not be published. Home Publications Directory of Bank Offices. Certain Concepts A. State Bank of India and its Associates 2. Nationalised Banks 3. In this article we are publishing the key differences between the Scheduled Banks and Non-Scheduled Banks.
The banks included in this category should fulfil two conditions;. The paid up capital and collected fund of the bank should not be less than Rs. Any activity of the bank will not adversely affect the interests of the depositors. Scheduled Banks automatically acquires the membership of the clearing house. Scheduled Banks get the facility of the rediscount of first class exchange bills from RBI. Structure of Banking Sector in India.
There are two types of banks: scheduled and non-scheduled banks, in addition to public and private banks. Scheduled banks are banks that are listed in the 2nd schedule of the Reserve Bank of India Act, The bank's paid-up capital and raised funds must be at least Rs5 lakh to qualify as a scheduled bank. Scheduled banks are liable for low-interest loans from the Reserve Bank of India and membership in clearinghouses.
They must, however, meet certain requirements, such as maintaining an average daily CRR Cash Reserve Ratio balance with the central bank at the rates set by it. Scheduled Banks All commercial banks, including nationalized, international, cooperative, and regional rural banks, fall under scheduled banks. The bank must demonstrate to the central bank that its operations do not jeopardize depositors' interests. The bank must be a company, not a single owner or partnership company. Non-scheduled banks, by definition, are those that do not adhere to the RBI's regulations.
They are not mentioned in the Second Schedule of the RBI Act, , and are therefore deemed incapable of serving and protecting depositors' interests. Non-scheduled banks must also meet the cash reserve requirement, but not with reserve banks, but with themselves.
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