Airtel Payments Bank has been categorised as Scheduled Bank

• 07 Jan 2022

Airtel Payments Bank has been categorised as a scheduled bank by the Reserve Bank of India (RBI).

Meaning of Scheduled Bank

• The banks in the Indian banking system are sub categorized as Scheduled Banks, Non-Schedule Banks, Private Banks and Public Banks.
• Scheduled banks are those banks that are listed under Schedule II of the Reserve Bank of India Act, 1934.
• The bank's paid-up capital and raised funds must be at least Rs. 5 lakh to qualify as a scheduled bank. These banks are liable for low interest loans from the RBI.
• They also have membership in clearing houses.
• They also have numerous obligations to fulfil such as maintaining an average daily Cash Reserve Ratio with the central bank.

Types of Scheduled Banks in India

• The banks listed in Schedule II are further classified as –
• Scheduled Commercial Public Sector Banks
• SBI and its associates
• Scheduled Commercial Private Sector Banks
• Old Private Banks
• New Private Sector Banks
• Scheduled Foreign Banks in India

Main Functions of Scheduled Banks

• Acceptance of deposits from the public
• Provide demand withdrawal facility
• Lending facility
• Transfer of funds
• Issue of drafts
• Provide customers with locker facilities
• Dealing with foreign exchange

Differences between a Scheduled Bank and Non-Scheduled Bank