Question
A scheduled bank under the RBI Act, 1934 is defined in
Section 2(e) as a bank included in which Schedule?Solution
Section 2(e) defines a 'scheduled bank' as a bank included in the Second Schedule. The Second Schedule, read with Section 42, contains the list of scheduled banks. The Bank, by notification in the Gazette of India, may direct the inclusion or exclusion of banks from the Second Schedule based on criteria such as paid-up capital and reserves of not less than five lakhs of rupees. Thus a scheduled bank is one included in the Second Schedule.
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