CURRENT AFFAIRS

Detailed explanation-1: -The RBI has excluded six public sector banks, including OBC and Allahabad Bank, from the Second Schedule of the RBI Act following their merger with other banks. The six banks are Syndicate Bank, Oriental Bank of Commerce (OBC), United Bank of India, Andhra Bank, Corporation Bank, and Allahabad Bank.

Detailed explanation-2: -(i) Yes Bank has been included in the Second Schedule to the Reserve Bank of India Act, 1934 with effect from 19th August 2004. (ii) IDBI Bank has been excluded from the Second Schedule to the Reserve Bank of India Act, 1934 with effect from 2nd April 2005.

Detailed explanation-3: -Satish Kumar Gupta, MD and CEO of Paytm Payments Bank Ltd. said, “The inclusion of Paytm Payments Bank in the Second Schedule to the Reserve Bank of India Act, 1934, will help us innovate further and bring more financial services and products to the underserved and unserved population in India.”

Detailed explanation-4: -All banks which are included in the Second Schedule to the Reserve Bank of India Act, 1934 are Scheduled Banks. These banks comprise Scheduled Commercial Banks and Scheduled Co-operative Banks.

Detailed explanation-5: -Scheduled banks are banks that are listed in the 2nd schedule of the Reserve Bank of India Act, 1934. The bank’s paid-up capital and raised funds must be at least Rs5 lakh to qualify as a scheduled bank. Scheduled banks are liable for low-interest loans from the Reserve Bank of India and membership in clearinghouses.