In a significant development for the urban cooperative banking sector, the Reserve Bank of India (RBI) has included Mumbai based Model Co-operative Bank in the Second Schedule to the Reserve Bank of India Act, 1934, thereby granting it the prestigious “Scheduled Bank” status.
“In pursuance of clause (a) of sub-section (6) of Section 42 of the Reserve Bank of India Act, 1934 (2 of 1934), the Reserve Bank of India hereby directs the inclusion of “Model Co-op. Bank Ltd.” in the Second Schedule to the said Act.” as per the gazette notification released on Thursday.
With this inclusion, Model Co-operative Bank becomes the fourth urban cooperative bank (UCB) to be accorded scheduled status in the current financial year.
Earlier, the RBI had granted similar recognition to Vishweshwara Sahakari Bank (Pune), Deogiri Nagari Sahakari Bank (Aurangabad), and Ahmednagar Merchants Co-op Bank (Ahmednagar).
The scheduled status enables the bank to access facilities such as borrowing from the RBI at the bank rate, participate in clearing houses, and enhance its financial credibility among stakeholders.
It bears recalling that for many years the bank had been striving to attain scheduled status, and now it has finally achieved it. In fact, during its recently held annual general meeting, the bank reiterated its aim of obtaining scheduled status.
The bank has a business mix of around Rs 1,900 crore, and in 2024-25, its net profit (after tax) stood at Rs 7.26 crore.