Scheduled Bank
A scheduled bank is a banking institution that is regulated by a central authority, typically a national government, and operates under a set of rules and regulations. Scheduled banks are typically larger and more complex than other types of banks, such as savings banks or credit unions. They offer a wide range of services, including deposit accounts, loans, payments, and money transfers.
Key Features of Scheduled Banks:
- Regulated by a Central Authority: Scheduled banks are regulated by a central authority, which sets standards for their operations, including capital adequacy requirements, lending limits, and consumer protection measures.
- Large and Complex: Scheduled banks are typically larger and more complex than other types of banks, with a wide range of services and a large customer base.
- Full-Service Banks: Scheduled banks offer a comprehensive range of banking services, including deposit accounts, loans, payments, money transfers, and investment services.
- Publicly Traded: Many scheduled banks are publicly traded companies, which means their stock prices are subject to market fluctuations.
- Subject to Competition: Scheduled banks compete with other banks for customers, market share, and profitability.
Examples of Scheduled Banks:
- Bank of America
- Wells Fargo
- Citigroup
- JPMorgan Chase
- HSBC
Advantages:
- Safety and security: Scheduled banks are regulated by a central authority, which ensures a high level of safety and security for depositors.
- Convenience: Scheduled banks offer a wide range of services at many convenient locations.
- Access to Credit: Scheduled banks have a larger capacity to lend money, which makes them more accessible to borrowers.
- Financial Stability: Scheduled banks are considered to be more financially stable than other types of banks.
Disadvantages:
- Higher Fees: Scheduled banks typically have higher fees than other types of banks.
- Less Personal: Scheduled banks can be less personal than smaller banks.
- Limited Investment Options: Some scheduled banks may have limited investment options compared to larger banks.
- Complex and Bureaucratic: Scheduled banks can be complex and bureaucratic, which can make it difficult for customers to navigate their services.
FAQs
What is meant by a scheduled bank?
A scheduled bank is a bank listed under the Second Schedule of the Reserve Bank of India (RBI) Act, 1934, meeting certain criteria that qualify it to borrow from the RBI and maintain certain reserves.
What is the difference between scheduled and non-scheduled banks?
Scheduled banks meet the RBI’s criteria, including maintaining a specific capital requirement and reserves, while non-scheduled banks do not meet these criteria and have limited access to RBI funds and services.
Is HDFC Bank a scheduled bank?
Yes, HDFC Bank is a scheduled commercial bank in India, meaning it is listed under the RBI’s Second Schedule.
Which is the largest scheduled commercial bank in India?
The State Bank of India (SBI) is the largest scheduled commercial bank in India in terms of assets, branch network, and customer base.
How many scheduled banks are there in India?
As of recent data, there are over 200 scheduled banks in India, including public, private, foreign, and regional rural banks.
