QS Study

Features of Scheduled Bank

The scheduled bank means which bank those are identified in the particular name list of banks under the rule of the central bank. Every commercial bank has to be scheduled under the central bank. There are some rules and conditions for the commercial banks to be scheduled. Normally bank means scheduled bank. A scheduled bank has some special features. The features are given below:

Member of Central Bank: Scheduled banks are enlisted and governed by the central bank. So, scheduled bank means a member of the central bank.

Member of Money Market: the Central bank is the parent of money market of a country. So, these banks are considered as the member of the money market.

Minimum Paid-Up Capital and Reserve Fund: Scheduled banks have to keep a definite amount of paid-up capital and reserve fund in the central bank. In many countries, the amount is selected by the central hank.

Legal Entity: Every scheduled bank is formed under Banking Company Act-1991 of respective counts and registered by central hank. So, every bank has own legal entity.

Liquidity Conditions: Banks can develop its liquidity condition by following the advice given by the central bank. To maintain the liquidity ration balanced, the commercial bank has to know the required CRR and the SRR ratios.

Member of Clearing House: Every scheduled bank is the member of the central bank and those banks can enjoy every advantage provided by the clearinghouse in inter-banking activities.

Relation of Cooperation: Central bank and scheduled bank are cooperatively related. Central bank helps at its level best in time of need and scheduled bank help by maintaining rules and regulations.

Adequacy of provision: The bank has to maintain the provision against the classified loans. In other words, this is required for the covering of any loan loss.

Agency: Central bank and the scheduled bank work as an agent of each other in time of need.

Submission of Weekly Report: Every scheduled bank has to submit the weekly bank needs to be the report of their activities. It is mandatory for all scheduled bank.

From the above-discussed points, we can finally conclude that a scheduled for its own benefit.

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