Scheduled and Non-Scheduled Banks/ What are scheduled banks/ what are non scheduled banks
In India the
central banking authority is the Reserve Bank of India. It is also referred to
as the “Apex Bank”. It functions under an act called The Reserve Bank of India
Act’1934. All the banks and other financial institutions operating in India come
under the monitoring and control of RBI. RBI controls the banking sector in
India through an act called “the banking Regulations Act’ 1949. In the past,
when there were very few banks, RBI used to include all the scheduled banks in
its schedule. A Bank that is not
a scheduled bank is referred to as “Non scheduled” bank even in its banking
licence.
The difference lies in the type of banking activities that a
bank can carry out in India. In the case of a scheduled bank, it is licensed by
the RBI to carry on extensive banking operations including foreign exchange
