RBI Important Bank List: If you are looking for the safest bank in the country, then the Reserve Bank has fulfilled your search. RBI has recently released the list of the 3 safest banks in the country. It includes 2 private and one government bank.
The Reserve Bank has made such a rule under which the safest bank in the country has to keep the highest reserve. But do you know which bank has to keep the most cash in reserve and why has the RBI made such a rule. Not only this, the Reserve Bank also releases a proper list of such banks every year. This year too, the RBI has released the list of such banks, which have to keep the most cash reserve.
RBI releases the list of Domestic Systemically Important Banks (D-SIBs) every year. This time RBI has included State Bank of India, HDFC Bank and ICICI Bank. The central bank released the list of D-SIBs on Wednesday, which includes one government bank and two private banks.
What is the responsibility of these banks
To be included in this list, lenders are required to maintain higher ‘Common Equity Tier 1’ (CET 1) in addition to the capital conservation reserve as per the ‘bucket’ under which it is classified. According to the list, State Bank of India (SBI) still remains in ‘Bucket 4’, for which the country’s largest lender will have to maintain an additional CET 1 of 0.80 percent. That is, it is considered the safest bank in the country.
In which category are the rest of the banks
The largest private sector lender HDFC Bank has been placed in ‘Bucket 2’, under which it will have to maintain 0.40 percent more CET 1. The central bank said that the higher D-SIB surcharge for SBI and HDFC Bank will be applicable from April 1, 2025. Hence, the D-SIB surcharge applicable on SBI and HDFC Bank till March 31, 2025 will be 0.60 per cent and 0.20 per cent respectively.
Which bank is in Bucket 1
ICICI Bank has been classified in ‘Bucket 1’, in which the second-largest private sector lender will have to maintain an additional 0.20 per cent in CET-1 reserves. The RBI said that this classification is based on data collected from banks till March 31, 2024. The central bank first announced the framework to deal with D-SIBs in 2014. SBI and ICICI Bank were included in this list in 2015 and 2016, but in 2017 HDFC Bank was also included in the list along with the other two banks.
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