RBI Includes ‘Vishweshwar Sahakari Bank Ltd., Pune’ in the List of Scheduled Banks

Circular No. RBI/2025-26/41 DoR.RET.REC.21/12.07.160/2025-26; Dated: 27.05.2025

1. Regulatory Snapshot

The Reserve Bank of India (RBI) has, by Notification DoR.REG./LIC.No.S75/08.27.300/2025-26 dated 7 April 2025 and published in the Gazette of India on 9 May 2025, placed Vishweshwar Sahakari Bank Ltd., Pune in Schedule II of the RBI Act, 1934. The inclusion is made under the powers granted to the RBI by section 42(6)(a) of the Act.

2. Compliance & Prudential Requirements

1. CRR Maintenance – A percentile of demand and time liabilities must now be kept with RBI in the form of cash balances.
2. Reporting Frequency – Weekly Form-A returns on liabilities and assets, plus monthly off-site returns.
3. Capital Adequacy & Exposure Norms – Must continue to meet the UCB-specific Basel-III–aligned requirements already notified by RBI.
4. Priority-Sector Lending – Obligations remain (per UCB framework), but scheduled status improves scope for refinance through NABARD, SIDBI, etc.

3. Strategic Advantages for Vishweshwar Sahakari Bank

• Lower-Cost Funding – Access to RBI’s overnight and term liquidity windows reduces reliance on costlier inter-bank borrowings.
• Broader Business Lines – May now participate in central-government and state-government business where “scheduled bank” status is prerequisite.
• Enhanced Brand Confidence – Listing in Schedule II is perceived by customers as validation of regulatory soundness, aiding CASA mobilisation.
• Participation in Clearing Houses – Automatic membership (or easier admission) to RBI-managed clearing and settlement systems.

4. Next Steps for the Bank

1. Treasury Setup – Establish a dedicated desk for CRR/SLR management and RBI market operations.
2. System Upgrades – Align core banking and MIS to generate Form-A, Section-42 returns automatically.
3. Public Communication – Highlight scheduled status in marketing to attract deposits and institutional tie-ups.
4. Governance Reinforcement – Strengthen ALM and risk-management committees to meet higher regulatory expectations.

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