The Safest Bank in India: Major News! Know where your money is secure after the RBI announced a list of safe banks.

 The Safest Bank in India: Major News! Know where your money is secure after the RBI announced a list of safe banks.

RBI just published a list of India's safest banks. These banks are HDFC, ICICI, and SBI, respectively. D-SIBs is another name for these banks. Also, the RBI has specified where your money is secure.

RBI just published a list of India's safest banks. These banks are HDFC, ICICI, and SBI, respectively. D-SIBs is another name for these banks. Domestic Systemically Important Bank is referred to as D-SIB. Every year, RBI releases their list. These are the banks whose failure could have a significant negative effect on a nation's economy. They cannot, in essence, be permitted to drown.

But, how these banks are chosen and how they are known is crucial for the national economy. When was it deemed necessary to compile a list of these banks? We'll try to explain this to you today. Also, we will examine the criteria used to designate a bank as D-SIB.

worldwide recession

Even the major banks failed to manage the economy during the 2008 global recession. Large nations were engulfed in crises in such a circumstance. Then it was thought that certain banks would need to be chosen in order to support the nation's economy through such trying times. The government would seek to save these banks if there are any issues. DSIB began in this manner.

Initial list:

The RBI had a framework for this ready in 2014. released the first list of DSIB starting in 2015. SBI and ICICI Bank came in first and second, respectively, on the list. In response, HDFC Bank joined in 2017.

What banks are incorporated—

These banks are listed among the DSIB banks. whose combined assets are greater than 2% of the GDP of the nation. They have been divided into five groups based on their relative importance. From one to five, they are arranged in ascending order. The fifth-placed bank is the most significant.

There isn't a bank in this nation at the moment. The top two banks are currently ICI and HDFC Bank, with SBI in third place. These banks are subject to the same regulations. For instance, a portion of their risk-weighted assets must be allocated to Tier-I capital. Liquid assets like cash and stocks make up the majority of Tier 1 capital.