In a significant regulatory development, New India Co-operative Bank Ltd., Mumbai has been excluded from the Second Schedule to the Reserve Bank of India Act, 1934.
The decision was issued through Notification No. CO.DOR.RAUG.No.S7907/08.27.498/2025-26 dated January 06, 2026, and subsequently published in the Gazette of India (Part III – Section 4) on January 29, 2026.
What Does Exclusion from the Second Schedule Mean?
Banks listed in the Second Schedule of the RBI Act are known as Scheduled Banks. These banks enjoy certain privileges, including:
- Access to liquidity support from the RBI
- Eligibility to borrow funds from the RBI
- Membership in clearing houses
- Greater public confidence and regulatory recognition
With this exclusion, New India Co-operative Bank Ltd., Mumbai will no longer be classified as a Scheduled Bank.
About the Second Schedule of the RBI Act, 1934
The Second Schedule under the RBI Act includes banks that meet specific criteria laid down by the RBI, such as:
- Minimum paid-up capital and reserves
- Financial soundness
- Compliance with regulatory requirements
If a bank fails to meet these criteria or faces regulatory concerns, the RBI has the authority to remove it from the Schedule.
Impact on Customers
At present, the notification only confirms the regulatory status change. Customers should:
- Stay updated through official bank communication
- Monitor announcements from the RBI
- Avoid panic withdrawals unless advised by regulators
Exclusion does not automatically mean closure, but it may indicate supervisory or financial concerns requiring corrective action.
Official Details
- Notification Number: CO.DOR.RAUG.No.S7907/08.27.498/2025-26
- Notification Date: January 06, 2026
- Gazette Publication Date: January 29, 2026
- Gazette Section: Part III – Section 4
The exclusion of New India Co-operative Bank Ltd., Mumbai from the Second Schedule marks an important regulatory development in India’s banking sector. The RBI continues to monitor cooperative banks closely to ensure financial stability and protect depositor interests.
Customers and stakeholders are advised to follow official RBI updates for further clarity.
Official Sources : Press Releases – Reserve Bank of India
Rajil M P is a seasoned banking expert and the Founder of IndianBanker.com. With over eight years of leadership as a Senior Manager in India’s public sector banking system, he brings firsthand experience in credit appraisal, regulatory compliance, and branch operations. A certified professional, Rajil holds flagship credentials from the IIBF (JAIIB & CAIIB) and is a certified IRDAI-compliant insurance professional. He specializes in translating complex RBI policies into actionable financial insights for both banking professionals and the general public.
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