RBI includes Bandhan Bank in second schedule list

RBI includes Bandhan Bank in second schedule list

Reserve Bank today said that newly launched Bandhan Bank has been included in the second schedule list, making it eligible for loans from the central bank at bank rate.

"We advise that the name of Bandhan Bank Limited has been included in the Second Schedule to the Reserve Bank of India Act, 1934 with notification dated September 3," RBI said in a notification.

A scheduled bank is eligible for loans from the RBI at bank rate. They are also given membership to clearing houses.

Bandhan Bank is the first instance of a micro-finance entity in India transforming into a universal bank.

It received an in-principle approval from the RBI in April 2014 and the banking regulator's final nod on June 17, 2015.

Besides, Industrial Bank of Korea and Korea Exchange Bank Co Ltd have been included in the second schedule.