Difference Between Scheduled And Non-Scheduled Bank

 Difference Between Scheduled And Non-Scheduled Bank

Hello friends, in today's article we are going to know what is Scheduled Bank and Non-Scheduled Bank and what is the difference between them. In this article, you have been told about it in detail. After reading this article, what is Scheduled Bank and Non-Scheduled Bank and what is the difference between them, there will be no need to read another post related to it, then definitely read the article till the end, then let's start.

Difference Between Scheduled And Non-Scheduled Bank

What is Scheduled Bank?

      A bank which is listed in the Second Schedule to the Reserve Bank of India Act, 1934 is considered a Scheduled Bank.
       The list of scheduled banks includes State Bank of India and its holding companies (such as State Bank of Travancore), all nationalized banks (Bank of Baroda, Bank of India, etc.), regional rural Banks (RRBs), Foreign Banks (HSBC Holdings plc, Citibank NA). and some co-operative banks. Private sector banks are also included in these, (HDFC Bank Limited) is also included.
          To qualify as a Scheduled Bank, the paid-up capital and accumulated funds of the bank should not be less than Rs.5 lakh. Scheduled banks are eligible to borrow from the Reserve Bank of India at the bank rate, and are granted membership of clearing houses.

What is Non-Scheduled Bank?

       Non-Scheduled Banks are those banks which are not listed in the Second Schedule of the RBI Act, 1934. They do not conform to all the norms under section 42, but follow specific guidelines laid down by RBI.
        Banks with reserve capital of less than Rs 5 lakh qualify as non-scheduled banks. Unlike scheduled banks, these are not entitled to borrow from the RBI for general banking purposes, except under emergency or unusual circumstances.
Following are the number of scheduled banks in our country according to the Reserve Bank:
  • Scheduled Public Sector Banks - 12
  • Scheduled Private Sector Banks - 22
  • Scheduled Small Finance Bank - 11
  • Scheduled Payment Bank - 3
  • Scheduled Regional Rural Banks - 43
  • Scheduled Foreign Banks in India - 46

Difference Between Scheduled And Non-Scheduled Bank

  • Scheduled Banks are included in the Second Schedule of the Reserve Bank of India Act, 1934, while Non-Scheduled Banks are not included in the Second Schedule of the Reserve Bank.
  • Scheduled banks are allowed to borrow money from the Reserve Bank of India for day-to-day banking activities while non-scheduled banks are not allowed.
  • Scheduled Banks are required to deposit the amount of “Cash Reserve Ratio” with the Reserve Bank of India i.e. scheduled banks are required to deposit the amount of CRR with RBI while non-scheduled banks (Non-Scheduled Bank) is not bound to keep the amount of “Cash Reserve Ratio” with itself.
  • Scheduled banks take care of the interests of the depositors while non-scheduled banks do not because they are not bound to follow the guidelines of the Reserve Bank of India. .
  • To qualify as a scheduled bank, the paid-up capital and accumulated funds of the bank should not be less than Rs.5 lakh. There is nothing like this in Non-Scheduled Bank.
  • Scheduled banks themselves obtain membership of the "clearing house". While non-scheduled banks cannot become a member of the "clearing house".
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Location: India

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