Union Minister of State for Finance Pankaj Chaudhary in a written reply in Rajya Sabha informed that scheduled status for a cooperative bank significantly enhances confidence among depositors, financial institutions, and market participants.
He explained that a scheduled bank becomes eligible for the purchase, sale, or rediscount of Promissory Notes and Bills of Exchange from the Reserve Bank of India (RBI), availing refinance from RBI against promissory notes issued by it, and seeking loans and advances against permitted securities from RBI.
As per a Government of India notification dated September 9, 2023, Tier 3 and Tier 4 Primary (Urban) Cooperative Banks (UCBs) that fulfil the criteria stipulated for Financially Sound and Well Managed (FSWM) UCBs are eligible for inclusion in the Second Schedule of the RBI Act, 1934.
The eligibility conditions include maintaining the minimum deposits required for categorisation as a Tier 3 UCB for two consecutive years and maintaining a Capital to Risk Weighted Assets Ratio (CRAR) of at least 3% above the minimum CRAR applicable for UCBs.
Citing RBI data, Chaudhary stated that as of March 31, 2025, there are 1,457 UCBs in the country, out of which 49 UCBs currently enjoy scheduled status.
