New Delhi:
The Reserve Bank has released the names of the country’s safest and most reliable banks.
These banks are so important for the customer and the Indian economy that if there is any loss to these banks, the whole country will have to bear the brunt of it.
RBI has released the list of Domestic Systemically Important Banks (D-SIBs) 2022, which includes the names of one government and two private sector banks.
The index for the year 2022 also has the terms of the banks contained in the previous year (2021).
The Reserve Bank has said that in this list of 2022, apart from the country’s largest government bank, SBI, the names of private sector HDFC (HDFC) and ICICI Bank (ICICI) are also included.
Such words are included in this list of domestic systemically important banks whose drowning or failure can severely impact the entire financial system.
RBI keeps a particular eye on such banks, and the news of their sinking cannot be raised.
Strict rules for these banks
The Reserve Bank applies strict measures to the banks coming from this list. Such banks must keep some part of the risk-weighted assets as Tier-1 equity.
According to the RBI, SBI must control 0.60 percent of its risk-weighted assets as Tier-1 equity.
At the same time, for HDFC and ICICI Bank, it is 0.20 percent of their risk-weighted assets.
Why is this list important
In 2015, RBI issued a list of such banks that are very important for the country’s financial system and economy and keeps a close watch on it.
Every year in August, the Reserve Bank ratings the banks according to their reach and business and then prepares a list of the most important banks.
So far, only three banks have been included in this list. The danger of drowning of the banks included in the list cannot be taken, and the government is also ready to help them if needed.
Includes performance up to March 2022
The banks included in this list of RBI have been selected based on their performance till March 2022. In 2015 and 2016, RBI included only SBI and ICICI Bank in this list.
Later, looking at the data till March 2017, HDFC Bank has also been included. Global rating agency Moody’s raised questions due to having only two names in the first list released in 2015.
