RBI Notifies Removal of 19 Regional Rural Banks from the Second Schedule [Read Notification]
RBI announced the removal of 19 Regional Rural Banks from the Second Schedule of the RBI Act
RBI
RBI
The Reserve Bank of India (RBI) has issued a notification dated 8 October 2025, announcing that 19 Regional Rural Banks will be removed from the Second Schedule of the Reserve Bank of India Act, 1934. The notification was published in the Gazette of India on 11 November 2025. This decision means that these banks will no longer be Scheduled Banks under the RBI Act.
What is the Second Schedule?
A bank listed in the Second Schedule is called a “Scheduled Bank.” Scheduled banks enjoy certain privileges such as:
- Access to RBI facilities
- Eligibility for certain government transactions
- Increased financial credibility
Removing a bank from the Second Schedule means it becomes a non-scheduled bank.
According to the notification, the RBI directs the exclusion of 19 Regional Rural Banks (RRBs) from the Second Schedule of the RBI Act.
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List of RRBs Removed
- Andhra Pragathi Grameena Bank
- Andhra Pradesh Grameena Vikas Bank
- Chaitanya Godavari Grameena Bank
- Saptagiri Grameena Bank
- Baroda Gujarat Gramin Bank
- Saurashtra Gramin Bank
- Karnataka Vikas Grameena Bank
- Karnataka Gramin Bank
- Madhya Pradesh Gramin Bank
- Madhyanchal Gramin Bank
- Maharashtra Gramin Bank
- Vidharbha Konkan Gramin Bank
- Odisha Gramya Bank
- Utkal Grameen Bank
- Rajasthan Marudhara Gramin Bank
- Baroda Rajasthan Kshetriya Gramin Bank
- Baroda U.P. Bank
- Aryavart Bank
- Prathama U.P. Gramin Bank
This order is signed by R. Lakshmi Kanth Rao, Executive Director, RBI.
In recent years, the government and RBI have been working on consolidating Regional Rural Banks to strengthen rural credit delivery. Several RRBs have already been merged to create larger and more efficient entities.
For customers, services are expected to continue without immediate disruption. Deposits in RRBs remain backed by government ownership. However, the banks involved may soon issue their own notices explaining changes in operations, branch structures or merger details.
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