RBI Adds Deogiri & Ahmednagar Co-op Banks to Scheduled List

Circular No. RBI/2025-26/69 DoR.RET.REC.41/12.07.160/2025-26;  Dated: 25.07.2025

In a significant development, the Reserve Bank of India (RBI) has exercised its powers under Section 42 of the Reserve Bank of India Act, 1934, to include two cooperative banks in the list of Scheduled Banks. The banks added are Deogiri Nagari Sahakari Bank Ltd., located in Chhatrapati Sambhajinagar (formerly Aurangabad), and Ahmednagar Merchant’s Co-operative Bank Ltd., based in Ahmednagar. This move marks a notable milestone for both institutions and reflects their compliance with the criteria laid down by the RBI for inclusion in the Second Schedule of the RBI Act.

Being classified as a Scheduled Bank offers several advantages. These banks will now be eligible to access facilities from the RBI, such as borrowing through the Liquidity Adjustment Facility (LAF), and they will be allowed to participate more freely in the clearinghouse arrangements. Inclusion in the Second Schedule also enhances the reputation and credibility of a bank, which may improve depositor confidence and attract more customers.

Additionally, Scheduled Banks are subject to certain obligations, including maintaining a specified percentage of their net demand and time liabilities (NDTL) with the RBI as a cash reserve ratio (CRR). They must also adhere to more stringent regulatory norms compared to non-scheduled banks. However, the benefits associated with schedule status often outweigh these obligations, providing improved financial and operational standing.

The RBI’s decision to include these cooperative banks in the Second Schedule not only strengthens the cooperative banking framework but also demonstrates the central bank’s continued efforts to promote financial stability and inclusion across regions. With this recognition, both banks are expected to play a more impactful role in serving the banking needs of their respective communities.

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