What changed
RBI notified that Rabobank International (Coöperatieve Centrale Raiffeisen – Boerenleenbank B.A.) has been added to the Second Schedule of the RBI Act, 1934. The inclusion was effected via Notification DBOD.IBD.No.948/23.03.027/2011-12 dated July 18, 2011, published in the Gazette of India on July 30, 2011.
What it means for you
This inclusion grants Rabobank International the status of a scheduled commercial bank in India, making it subject to RBI's regulatory framework including CRR and SLR requirements. For other banks, it means an additional competitor in the banking space.
What you must do
- Update your internal records to reflect Rabobank International as a scheduled bank for interbank transactions and reporting.
- Review any existing exposure or counterparty limits with Rabobank International in light of its new regulatory status.
- Monitor Rabobank's operations in India for potential competitive impact on your bank's agri and corporate lending portfolios.
Who it affects
All scheduled commercial banks in India, Rabobank International (now a scheduled bank), Banks with interbank dealings or exposure to Rabobank
What does inclusion in the Second Schedule mean for Rabobank International?
It means Rabobank International is now a scheduled bank under the RBI Act, 1934, and must comply with all regulatory requirements such as maintaining CRR and SLR.
When did this inclusion take effect?
The notification was issued on July 18, 2011, and published in the Gazette of India on July 30, 2011. The circular advising banks was sent on October 14, 2011.
Does this affect other banks' operations?
Yes, other banks must now treat Rabobank International as a scheduled bank for interbank transactions.