On June 11, 2025, Mumbai (Maharashtra) Reserve Bank of India (RBI) has granted Scheduled Bank (SB) status to Pune (Maharashtra) based Vishweshwar Sahakari Bank Limited (VSBL), one of India’s leading Urban Cooperative Bank (UCB), in exercise of powers given under Section 42(6) (a) of the RBI Act, 1934.
- Vishweshawar Sahakari Bank has been placed in Schedule II of the RBI Act, 1934.
- With this, it becomes the 50th cooperative bank in India and 3rd from Pune to receive the Scheduled Bank status from the RBI.
About Scheduled Banks (SB):
i.SBs in Indiaare those listed under Schedule II of the RBI Act, 1934. They are broadly classified into two categories: Scheduled Commercial Banks (SCBs) and Scheduled Co-operative Banks.
ii.To become a Scheduled Bank, a minimum paid-up capital of Rs 5 lakhs is required. But, in order to operate as a commercial bank, the RBI recommended a minimum capital of Rs 100 crores.
iii.SBs become eligible for debts/loans at the bank rate from the RBI; get the membership clearing housing automatically, and get rediscount from the RBI for 1st class exchange bills.
Key Criteria for Scheduled UCBs:
i.It is mandatory for the scheduled primary (urban) cooperative banks to maintain an average daily balance, i.e., the amount of which should not be less than 5% of their Net Demand and Time Liabilities (NDTL) in India in terms of Section 42 of the RBI Act, with the RBI.
ii.Urban (primary) cooperative banks are required to maintain the Statutory Liquidity Ratio (SLR), i.e., liquid assets in the form of cash, gold, or government-approved securities of a minimum of 25% of NDTL.
Revised Key Criteria for UCBs to get Scheduled Bank Status:
In February 2024, the RBI revised the eligibility criteria for the inclusion of UCBs in the Second Schedule to the RBI Act, 1934:
i.UCBs are required to maintain a Capital to Risk-Weighted Assets Ratio (CRAR) of at least 3% higher than the minimum requirement for their tier to enhance capital strength and resilience to risks.
ii.To be included in Schedule-II of the RBI Act, UCBs are required to ensure no major issues are flagged by the RBI in terms of regulations and supervision.
About Vishweshwar Sahakari Bank Limited (VSBL):
Chairperson-Anil Bharatsheth Gadve
Headquarters-Pune, Maharashtra
Established-1972
