<P> Scheduled Banks in India refer to those banks which have been included in the Second Schedule of Reserve Bank of India Act, 1934 . RBI in turn includes only those banks in this Schedule which satisfy the criteria laid down vide section 42 (6) (a) of the said Act . Banks not under this Schedule are called Non-Scheduled Banks . </P> <P> Every Scheduled bank enjoys two types of principal facilities: it becomes eligible for debts / loans at the bank rate from the RBI; and, it automatically acquires the membership of clearing house . </P>

What is scheduled and non scheduled banks in india