Explanation:

Explanation:

• Non-scheduled banks don't conform to all the criteria under clause 42, but dully follow specific guidelines as laid down by RBI. 
• Non- Scheduled Banks are also not eligible for havingloans from the RBI for day today activities but under theemergency conditions RBI can grant loan to them.
• These banks can have CRR fund with themselves as no compulsion has been made by the RBI to deposit it in the RBI.

Key differences between the Scheduled Banks and Non- Scheduled Banks are

• Scheduled banks follow the rules made by the RBI while Non-scheduled banks do not followthe rules made by the RBI.
• Scheduled banks are eligible for inclusion in the second schedule to the Reserve Bank ofIndia Act, 1934 while Non-scheduled banks are not included in the second schedule.
• Scheduled banks are allowed to borrow money from RBI for regular banking purposes whileNon-scheduled banks are not allowed.
•  Scheduled banks can become a member of clearing house while Non-scheduled banks can't.
• Scheduled banks and Non-scheduled banks both need to maintain the Cash Reserve Ratio but Scheduled banks have to deposit this amount in the RBI while Non-scheduled banks can depositthis amount with themselves.