RBI Includes ‘NongHyup Bank’ In The List Of Scheduled Banks Under Schedule II of RBI Act, 1934: In a recent notification, the Reserve Bank of India (RBI) has announced the addition of “NongHyup Bank” to the Second Schedule of the RBI Act, 1934. This momentous move is a watershed moment for NongHyup Bank, which is based in Jung-gu, Seoul, South Korea, and has been active in India since its inception in 2016. The inclusion in the Second Schedule is set to enhance the bank’s presence and further its financial endeavors in the Indian market.
Daily Current Affairs Quiz: July 2023
NongHyup Bank: A Brief Overview
- NongHyup Bank was founded in 2012 as a separate organisation from its former ownership and is now held by the National Agricultural Cooperative Federation (NACF).
- With its roots deeply embedded in the agricultural sector, the bank has been serving the financial needs of farmers and the rural community in South Korea.
NongHyup Bank’s Entry into India:
- Nonghyup Bank made its foray into the Indian market back in 2016, aiming to leverage its expertise in agricultural banking to support and enhance the country’s rural economy.
- Over the years, the bank has built a reputation for delivering personalised financial services to farmers and rural communities, thereby contributing to the growth of India’s agricultural industry.
Inclusion in the Second Schedule:
- The RBI’s decision to put NongHyup Bank in the Second Schedule of the RBI Act, 1934, is critical to the bank’s operations in India.
- Being part of the Second Schedule grants NongHyup Bank certain privileges and rights, allowing it to carry out a broader range of banking activities in the country.
- The RBI’s recognition highlights NongHyup Bank’s robust financial position and adherence to regulatory norms.
- As a result, the bank gains access to various facilities provided by the central bank, including liquidity support, clearing services, and the ability to participate in government securities auctions.
Strengthening Indo-Korean Financial Ties
- This strategic move not only strengthens NongHyup Bank’s position in the Indian banking landscape but also fosters stronger economic ties between South Korea and India.
- NongHyup Bank’s presence in India is projected to benefit both countries’ agricultural sectors by boosting agricultural finance and rural development.
