Coastal Local Area Bank in Vijayawada Gets Scheduled Bank Status
Coastal Local Area Bank Ltd, headquartered in Vijayawada (Andhra Pradesh), has been accorded Scheduled Bank status. Under Section 42(6) of the RBI Act, 1934, criteria include inclusion in the Second Schedule, minimum paid-up capital and collected funds of ₹5 lakh, and compliance/inspection under RBI norms and the Banking Regulation Act, 1949. Local area banks require ₹5 crore initial paid-up capital. Scheduled status enables RBI refinancing, clearing-house membership, and higher depositor confidence, aiding CASA and deposit-cost reduction.
The Hindu



