|Scheduled Commercial Banks
|Non Scheduled Commercial Banks
|Scheduled banks are banks that are listed in the 2nd schedule of the Reserve Bank of India Act, 1934.
|Non-scheduled banks, by definition, are those that do not adhere to the RBI’s regulations.
|Scheduled banks are liable for low-interest loans from the Reserve Bank of India and membership in clearinghouses.
|They are not mentioned in the Second Schedule of the RBI Act, 1934, and are therefore deemed incapable of serving and protecting depositors’ interests.
|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.
|Non-scheduled banks must also meet the cash reserve requirement, but not with reserve banks, but with themselves.
|The RBI allows Scheduled Banks to raise debts and loans at bank rates.
|These banks have certain privileges and benefits, such as:The ability to obtain a refinancing facility from the central bank, Access to currency storage facilities, Membership in the clearinghouse is automatic.
|They are risky to do business with due to their financial limitations.
|There are 11 Non-Scheduled State Cooperative Banks and 1500 Non-Scheduled Urban Co-operative Banks as described by RBI