RBI had recently released the list of Safest Bank in India. The names of these banks are HDFC, ICICI and SBI. These banks are also called D-SIBs. Along with this, RBI has told where your money is safe.
RBI had recently released the list of Safest Bank in India. The names of these banks are HDFC, ICICI and SBI. These banks are also called D-SIBs. D-SIB stands for Domestic Systematically Important Bank. RBI releases their list every year. These are such banks whose collapse can greatly affect the economy of a country. In short, they cannot be allowed to drown.
But how these banks are selected, how it is known, it is very important for the country’s economy. Also, when was the need felt to make a list of such banks. Today we will try to tell you this. Along with this, we will also see on what basis a bank is called D-SIB.
During the global recession in 2008, instead of handling the economy, big banks also collapsed. In such a situation, big countries got stuck in trouble. Then it was felt that some such banks would have to be selected which would work to support the country’s economy in times of such trouble. If there is any problem on these banks, then the government will work to save them. This is where DSIB started.
In the year 2014, RBI created a framework for this. Started releasing the first list of DSIB from 2015. First in the list, SBI and ICICI Bank made it to the list. After this, HDFC Bank also joined in 2017.
Which banks are included-
Those banks are included in the list of DSIB banks. Whose total assets are more than 2 percent of the country’s GDP. On the basis of their importance, they are put in five different categories. These are placed in increasing order from one to five. The bank that comes on the fifth position is the most important.
At present, there is no bank in the country here. ICI and HDFC Bank are currently on the first rank, while SBI is on the third rank. Some rules also apply to these banks. For example, they have to put some part of their risk weighted assets in Tier-1 capital. Tier-1 capital mainly consists of liquid assets such as stocks and cash.