Co-Operative Banks Added to RBI Second Schedule: Full List and What Scheduled Status Means

The Reserve Bank of India (RBI) has added 4 co-operative banks to the Second Schedule of the RBI Act, 1934. The inclusion was notified on May 8, 2026, and published in the Gazette of India on May 20, 2026.

This move grants these banks scheduled status under RBI regulations. The development reflects regulatory recognition based on compliance with specific eligibility criteria.

Which Co-Operative Banks Have Been Added to the RBI Second Schedule In 2026?

The RBI has included 4 co-operative banks in the Second Schedule through its latest notification. These banks are Contai Co-operative Bank Ltd., Contai, Prime Co-operative Bank Ltd., Surat, Shri Veershaiv Co-operative Bank Ltd., Kolhapur, and The Varachha Co-operative Bank Ltd., Surat.

The inclusion follows a regulatory assessment of financial stability and operational parameters. Each bank now qualifies as a scheduled co-operative bank under the RBI framework.

What Does Inclusion in RBI Second Schedule Mean for Banks?

Being included in the Second Schedule of the RBI Act grants a bank scheduled status. Scheduled banks are eligible to access facilities such as borrowing from the RBI under the Liquidity Adjustment Facility.

This status also enhances the credibility of the institution in the financial system. Additionally, scheduled banks are subject to stricter regulatory oversight and compliance requirements.

What Are the Eligibility Criteria for Scheduled Bank Status?

To qualify for inclusion in the Second Schedule, banks must meet specific criteria set by the RBI. These include minimum paid-up capital and reserves, along with satisfactory financial performance.

The RBI also assesses governance standards and regulatory compliance before granting status. Inclusion indicates that the bank meets the required benchmarks for operational and financial soundness.

How Does Scheduled Status Impact Customers and Operations?

Scheduled status can influence both operational capabilities and customer perception. Banks with this status may benefit from improved liquidity management through access to RBI facilities.

Customers may perceive scheduled banks as more stable due to enhanced regulatory supervision. However, banking services remain governed by individual bank policies and existing regulatory norms.

Read More: RBI Penalises 2 Co-operative Banks Over Compliance Failures.

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Conclusion

The addition of 4 co-operative banks to the RBI Second Schedule marks an important regulatory development. It reflects compliance with financial and operational standards required for scheduled status.

The move strengthens the institutional framework for these banks within the broader banking system. Overall, the inclusion highlights the evolving regulatory landscape for co-operative banks in India.

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