RBI Update – If you are also a bank account holder then this news is for you. Especially if you are an account holder of SBI, HDFC and ICICI Bank, then definitely know this update from RBI…
India’s banking sector is quite big. This includes many types of banks like government banks, private banks, small finance banks, co-operative banks, rural banks and payments banks. It is the responsibility of the Reserve Bank of India (RBI) to keep all these working properly and ensure that people’s money remains safe .
That is why whenever there is a situation of failure of any bank, RBI takes strict action in time. Like it was done in the case of increasing NPA of Yes Bank or other government banks. Now the Reserve Bank has released the list of 3 such banks of the country, which can never fail.
The Reserve Bank says that the country’s largest bank State Bank of India (SBI) is an important bank (D-SIB) in the domestic system . Two private sector banks ICICI Bank and HDFC Bank are also included in this list. D-SIBs are called such banks, which are so big that they cannot fail, that is, they are known as Too Big To Fail Banks .
What is the specialty of such banks?
Under the concept of ‘too big to fail’ bank, it is expected that when such banks face any crisis, the government will support them and save them from sinking. Therefore, these banks get some extra facilities in the funding market and the trust of customers also increases on these banks.
HDFC Bank was not included earlier-
- RBI said in a statement that SBI, ICICI Bank and HDFC Bank remain in this list based on the parameters of D-SIB list of 2021. RBI had declared SBI in 2015 and ICICI Bank as CODI-SIB in 2016.
- HDFC Bank was included in this category on the basis of data collected till 31 March 2017. The current list has been recently updated by the Reserve Bank on the basis of data received from banks till March 31, 2022.
- The Reserve Bank of India had released the framework for determining D-SIBs in July 2014. Under this framework, RBI has to disclose the names of banks declared as D-SIBs.
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