State Bank of Sikkim under RBI for its regulatory purview

State Bank of Sikkim under RBI for its regulatory purview:

The Reserve Bank Of India, India’s central bank, responsible for the issue and supply of the Indian rupee and the regulation of the Indian banking system. The State Bank of Sikkim under RBI for its regulatory purview on February 22, 2021. The bank of Sikkim, established five years before Sikkim acceded to India in 1973, provides treasury operations for the state government. The bank currently has 42 branch offices and operates three revenue counters for government works. The bank’s ownership structure will not change, but the State Bank of Sikkim under RBI is, regulated by the RBI on a par with other banks.

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Things to know about State Bank Of Sikkim:

The State Bank Of Sikkim is a state-owned banking institution. The headquarter of the bank is at Gangtok, Sikkim. It operates under the jurisdiction of the State of Sikkim. The bank handles the banking services as well as the treasury functions of the State Government of Sikkim. The bank is an autonomous body working under the Government of Sikkim. It was established in the year 1968 five years before Sikkim was made a part of India in 1973.

• It was not regulated by the Reserve Bank of India, unlike other banks until February 21, 2021.
• However, with this, regulatory amendment, the structure of bank ownership will not change.

Reason for State Bank of Sikkim under RBI for the regulatory purview:

 This state enjoys a special status under article 371F. Following this, Banking Regulation Act 1949 and Companies Act does not extend to Sikkim. The people are also not subject to Income Tax. This, the RBI had limited agreement to manage the public debt of the bank.

• Finally, the State Bank of Sikkim has come under RBI for its regulatory purview because of the depositor’s interest.

Thus the details about RBI that has brought the State Bank of Sikkim under its regulatory purview are given in this article.