Coastal Local Area Bank Limited achieves Scheduled Bank status

Why in News?

The Reserve Bank of India (RBI) has accorded Scheduled Bank status to Coastal Local Area Bank Limited, headquartered in Vijayawada, following its inclusion in the Second Schedule of the Reserve Bank of India Act, 1934, through a notification issued on September 4, 2026. The bank has been providing banking services for around 26 years.

About Scheduled Banks

Scheduled Banks are banks included in the Second Schedule of the RBI Act, 1934 and are regulated by the RBI. To qualify for scheduled status, a bank has to meet conditions prescribed under the Act, including requirements relating to its financial position and functioning. Scheduled banks are eligible to access certain RBI facilities, including borrowing/financial assistance from the central bank, subject to applicable conditions.

Scheduled commercial banks provide services such as accepting deposits, granting loans, fund transfers and locker facilities, and are required to maintain prescribed cash reserves with the RBI. The broader scheduled banking category includes public sector banks, private sector banks, foreign banks, Regional Rural Banks and scheduled cooperative banks.

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