RBI Current Affairs Dec 11, 2015: Newly constituted IDFC Bank Ltd has been included in the Second Schedule of the Reserve Bank of India Act, 1934.
IDFC Bank started its formal banking services in October 2015 with a total of 23 branches across the country. Of these, as many as 15 branches are in rural Madhya Pradesh.
A scheduled bank, in India, refers to a bank which is listed in the 2nd Schedule of the Reserve Bank of India Act, 1934. Banks not under this Schedule are called non-scheduled banks.
Scheduled banks are usually private, foreign and nationalised banks operating in India. However, cooperative banks are allowed to seek scheduled bank status if they satisfy certain criteria.
A scheduled bank is eligible for loans from the Reserve Bank of India at bank rate. They are also given membership to clearing houses.
IDFC bank, with a focus on technology, has started operations in corporate and wholesale banking, rural banking and treasury verticals.
As part of personal banking, the bank is offering free transactions at any bank ATMs, free fund transfers, free debit card for lifetime and no charges for any transactions except when cheques bounce.
Last year, IDFC, along with micro-lender Bandhan Financial Services, was selected for a banking licence.
Bandhan started operations in August with a network of over 500 branches.