Scheduled banks vs non scheduled banks | Difference between scheduled banks and non scheduled banks

Scheduled banks are those banks that are included in the Second Schedule of the Reserve Bank of India (RBI) Act, 1934. To qualify as a scheduled bank, a bank must have a paid-up capital and reserves of at least ₹5 lakh and must satisfy certain conditions laid down by the RBI. These banks enjoy various privileges, such as the ability to borrow funds from the RBI under the bank rate policy, participate in clearing house facilities, and are subject to strict supervision and regulation by the RBI. Examples include major commercial banks like State Bank of India, HDFC Bank, ICICI Bank, and Punjab National Bank. On the other hand, non-scheduled banks are not listed in the Second Schedule of the RBI Act and usually operate on a smaller scale. They do not meet the required criteria regarding minimum paid-up capital and other RBI norms. Consequently, they cannot access regular borrowing facilities from the RBI and are not members of the clearing house. These banks are still regulated by the RBI but have limited privileges compared to scheduled banks. Examples include some local area banks or small cooperative banks. In short, scheduled banks are larger, better regulated, and financially stronger, while non-scheduled banks are smaller institutions with limited scope and privileges. ======================================== 🔴 This video might be useful for students preparing for - 🫵🏻 11th Commerce #11thcommerce 🫵🏻 12th commerce boards #12thcommerce 🫵🏻 CUET #cuet 🫵🏻 CSEET(CS FOUNDATION ICSI) #cseet 🫵🏻 CA Foundation #cafoundation 🫵🏻 UGC NET COMMERCE #ugcnetcommerce 🫵🏻 LLB #llb 🫵🏻 UGC NET LAW #ugcnetlaw 🫵🏻 Economics Students ======================================== 🔴 In this video- Teacher's Name - CS Payal Popli Topic - Difference between scheduled banks and non scheduled banks #padhakulog =============================================== 🫵🏻 Connect with us- 🗣️Instagram- https://instagram.com/padhaku_log?igs... 🗣️Facebook-   / padhaku-log-101091301476679   🗣️Mail id- [email protected] 🗣️Watsapp-9630227777 🗣️Telegram-9630227777 =============================================== ❤️About us: Padhaku Log is a platform specially created for those students who live in remote areas and don’t have access to fancy coaching classes. A channel which wants to bring parity in knowledge level of all.