looking for

What is Scheduled bank

A bank may be scheduled or non-scheduled bank. ‘Scheduled bank’ has been defined by the Bangladesh bank order-1972.
According to Bangladesh bank order-1972 article (1), A scheduled bank means a bank for the time being included in the list of banks maintained by the central bank under sub-clause (a) of clause (2) of article 32. Any bank not included in this list is a non-scheduled bank. For example, as of today, Grameen bank is not a scheduled bank. All the commercial banks in Bangladesh are, however, scheduled banks. Now the total number of scheduled banks is 51.
To be scheduled bank, a bank must satisfy the following conditions-

1. Be carrying on the business of banking.
2. Be a bank company as defied in section 5 of the bank companies act-1991
3. Have a paid-up capital and reserves of an aggregate value as determined by Bangladesh bank. However, in the case of a co-operative bank, an exception may be made by the central bank.
4. Satisfy Bangladesh bank that its affairs are not being conducted in a manner detrimental to the interest of its depositors.
5. Maintain, if not otherwise permitted, liquidity at the specific rate. Currently statutory liquidity ratio is 18% of deposit liabilities. A portion of it must be maintained in cash with the central bank and the rest in the form of cash-in-tills, treasury bills, savings certificates and other approved securities.
6. Meticulously follow and implement any order, guidelines or instructions in the operational areas.
7. Send filled-in-returns and statements as required by the central bank.
In conclusion we can say that a scheduled bank is a bank that has to abide by and comply with the rules and regulations framed by Bangladesh bank with regard to capital and liquidity requirements, credit policy, foreign exchange and other operational areas of banking.