Update on India's safest bank. Your money is secure in these banks, and the RBI has recently given its seal of approval
RBI – The RBI's responsibility is to monitor the banking industry. He therefore takes a lot of difficult measures before any banks fail. In light of this, we will now discuss the safest banks mentioned by the RBI in this news.
India has a sizable banking industry. This includes a wide range of banks, including public and private institutions as well as small finance, cooperative, rural, and payment banks. The Reserve Bank of India (RBI) is in charge of ensuring that all of these continue to function properly and that the public's money is kept secure.
Because of this, the RBI acts quickly to enforce strict measures whenever there is a risk that a bank will fail. As was done when the NPA of Yes Bank or other government banks increased. A list of three such banks in the nation that can never fail has now been made public by the Reserve Bank.
The Reserve Bank claims that State Bank of India (SBI), the largest bank in the nation, is a significant bank (D-SIB) in the domestic financial system. This list also includes ICICI Bank and HDFC Bank, two private sector banks. D-SIBs are known as such banks, or too big to fail banks, because they are so large that they cannot fail.
What are these banks' areas of expertise?
According to the idea of "too big to fail" banks, when there is a crisis on such banks, the government is expected to support them and prevent them from drowning. Because of this, these banks receive additional funding options, and customers also have more faith in them.
HDFC Bank was not previously included-
SBI, ICICI Bank, and HDFC Bank are still on this list according to the criteria for the D-SIB list for 2021, according to a statement from the RBI. SBI was designated a CODI-SIB in 2015 by the RBI, and ICICI Bank in 2016.
Based on information gathered up until the 31st of March 2017, HDFC Bank was categorised under this heading. The Reserve Bank recently updated the list based on information received from banks through March 31, 2022.
In July 2014, the Reserve Bank of India published the methodology for calculating the D-SIB. The names of banks designated as D-SIBs must be disclosed by RBI in accordance with this framework.
