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RBI Grants Scheduled Bank Status to NSDL Payments Bank Limited Under Section 42(6)(a) of RBI Act, 1934.

Banking & Finance | Dated: 22 Jul 2025

The Reserve Bank of India (RBI) has granted Scheduled Bank status to NSDL Payments Bank Limited, a wholly owned subsidiary of National Securities Depository Limited (NSDL). The inclusion was made in Schedule II of the RBI Act, 1934, under Section 42(6)(a), providing the bank with direct access to RBI’s liquidity and refinancing facilities.

🎯 Key Highlights:

  • - As a result of this recognition, NSDL Payments Bank is now classified as a Scheduled Bank (SB), allowing it to borrow funds under the Marginal Standing Facility (MSF) and participate in Liquidity Adjustment Facility (LAF) operations. These privileges will significantly enhance the bank's liquidity access and risk management within the formal banking system.
  • - With this elevation, NSDL Payments Bank becomes the 5th payments bank in India to receive Scheduled Bank status, following India Post Payments Bank (IPPB), Fino Payments Bank, Airtel Payments Bank, and Jio Payments Bank. This inclusion marks a major step in deepening financial infrastructure and enabling broader monetary access under regulated norms.
  • - To qualify for SB status, a bank must meet RBI’s capital requirements. A minimum paid-up capital of ₹5 lakh is required for basic SB recognition, but to operate as a commercial scheduled bank, RBI recommends a capital of ₹100 crore. Additionally, Scheduled Banks must maintain a Cash Reserve Ratio (CRR) and become eligible for bank rate loans, clearinghouse membership, and redemptions for 1st class exchange bills.

💡 Other Important Facts:

  • (i) In a related move, RBI in June 2025 also granted Scheduled Bank status to Vishweshwar Sahakari Bank Limited (VSBL), a leading Urban Cooperative Bank (UCB).
  • (ii) With this approval, Vishweshwar Bank became India’s 50th cooperative bank and 3rd UCB to be listed under RBI’s Schedule II, strengthening cooperative sector integration in the Indian banking landscape.
  • (iii) This dual recognition highlights RBI’s strategic push to broaden financial inclusion by empowering niche and cooperative banking segments with direct access to its core monetary tools and financial systems.

📚 Test Your Knowledge:

Recently, which payments bank has been granted Scheduled Bank status by RBI under Section 42(6)(a) of the RBI Act, 1934?

Correct Answer: NSDL Payments Bank Limited

🚀 Quick Recap:

About RBI

  • Governor : Sanjay Malhotra
  • Headquarter : Mumbai