QUICK BANKING UPDATES
Mumbai, July 17, 2025 — In a significant regulatory development, the Reserve Bank of India (RBI) has announced the inclusion of NSDL Payments Bank Limited in the Second Schedule of the Reserve Bank of India Act, 1934. This update was formalized through Notification No. DoR.LIC.No.S2196/16.13.215/2025-26 dated June 19, 2025, and was subsequently published in the Gazette of India on July 10, 2025.
Being listed in the Second Schedule officially recognizes NSDL Payments Bank as a scheduled bank, making it eligible for various benefits and regulatory privileges. These include access to RBI’s liquidity adjustment facility, participation in government auctions, and eligibility for depositing surplus funds with the RBI.
This move reflects the growing importance and credibility of digital and payment-focused banks in India’s financial ecosystem. NSDL Payments Bank, a part of the National Securities Depository Limited (NSDL) group, has played a crucial role in offering digital banking services to underserved and remote populations through its simplified banking model.
What Does This Mean?
Scheduled Status: The bank is now officially recognized under the Second Schedule of the RBI Act.
Access to RBI Facilities: NSDL Payments Bank can now access RBI’s financial support facilities like repo and reverse repo.
Enhanced Credibility: The status boosts confidence among customers and institutional partners.
Wider Operational Scope: The bank can now participate in various government-related financial activities.
This step reinforces RBI’s commitment to promoting financial inclusion by supporting digital banks that extend last-mile connectivity in banking services.
