RBI adds NSDL Payments Bank Limited to Second Schedule
The inclusion of NSDL Payments Bank Limited under the Second Schedule of the RBI Act means the bank is now formally recognized as a scheduled bank by the Reserve Bank of India
In a significant development for the Indian banking sector, the Reserve Bank of India (RBI) has officially added NSDL Payments Bank Limited to the Second Schedule of the Reserve Bank of India Act, 1934. This notification, issued on June 19, 2025, and published in the Gazette of India on July 10, 2025, marks a key milestone for NSDL Payments Bank Limited, expanding its stature...
In a significant development for the Indian banking sector, the Reserve Bank of India (RBI) has officially added NSDL Payments Bank Limited to the Second Schedule of the Reserve Bank of India Act, 1934.
This notification, issued on June 19, 2025, and published in the Gazette of India on July 10, 2025, marks a key milestone for NSDL Payments Bank Limited, expanding its stature and regulatory recognition within the Indian financial system.
Scheduled banks enjoy certain privileges, including eligibility to borrow funds from the RBI at the bank rate and membership of clearinghouses. This status also reflects the RBI’s endorsement of the bank’s financial health, operational standards, and regulatory compliance.
NSDL Payments Bank Limited operates from its registered office at 401, 4th Floor, Tower 3, One International Center, Senapati Bapat Marg, Prabhadevi, Mumbai, Maharashtra — a location that has increasingly become a hub for innovative financial institutions. As a payments bank, NSDL Payments Bank Limited specializes in providing small savings accounts and payments/remittance services to low-income households, small businesses, and other customers traditionally underserved by conventional banks.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
The Reserve Bank of India’s notification references clause (a) of sub-section (6) of Section 42 of the RBI Act, 1934, under which this inclusion is authorized. This legal provision allows the central bank to designate banks as scheduled banks based on their financial stability and capacity to serve the public interest. The bank’s addition to the Second Schedule therefore recognizes its adherence to the stringent eligibility criteria mandated by the RBI.
The Executive Director of the RBI, R. Lakshmi Kanth Rao, signed the official notification that was published in the Extraordinary Gazette, signaling the formal acceptance of NSDL Payments Bank Limited into the league of scheduled banks. This recognition is expected to strengthen the bank’s operational capabilities and foster greater trust among its customers and partners.
Payments banks play a critical role in driving financial inclusion in India by leveraging technology to provide accessible and affordable banking services. NSDL Payments Bank Limited’s scheduled bank status is likely to enhance its ability to support the government’s vision of a digitally empowered economy and increase banking penetration in remote and underserved areas.
With this development, NSDL Payments Bank Limited joins the ranks of other prominent scheduled banks regulated by the RBI, now expected to boost investor confidence and open new avenues for partnerships and growth.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
