RBI adds NSDL Payments Bank Limited to Second Schedule

In a significant development for the Indian banking sector, the Reserve Bank of India (RBI) has officially added NSDL Payments Bank Limited to the Second Schedule of the Reserve Bank of India Act, 1934. This notification, issued on June 19, 2025, and published in the Gazette of India on July 10, 2025, marks a key milestone for NSDL Payments Bank Limited, expanding its stature and regulatory recognition within the Indian financial system. Scheduled banks enjoy certain privileges, including eligibility to borrow funds from the RBI at the bank rate and membership of clearinghouses. This status also reflects the RBI’s endorsement of the bank’s financial health, operational standards, and regulatory compliance.

NSDL Payments Bank Limited operates from its registered office at 401, 4th Floor, Tower 3, One International Center, Senapati Bapat Marg, Prabhadevi, Mumbai, Maharashtra — a location that has increasingly become a hub for innovative financial institutions. As a payments bank, NSDL Payments Bank Limited specializes in providing small savings accounts and payments/remittance services to low-income households, small businesses, and other customers traditionally underserved by conventional banks. Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here The Reserve Bank of India’s notification references clause (a) of sub-section (6) of Section 42 of the RBI Act, 1934, under which this inclusion is authorized. This legal provision allows the central bank to designate banks as scheduled banks based on their financial stability and capacity to serve the public interest. The bank’s addition to the Second Schedule therefore recognizes its adherence to the stringent eligibility criteria mandated by the RBI.