New Delhi: The Reserve Bank has released the names of the most secure and reliable banks in the country. These banks are so important for the customer and the Indian economy that if there is any loss to these banks, then 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 list for the year 2022 also has the names of the banks included in the previous year (2021).
The Reserve Bank has told 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 names are included in this list of domestic systemically important banks, whose drowning or failure can have a serious impact on the entire financial system. RBI keeps a special 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 are required to keep some part of the risk-weighted assets as Tier-1 equity. According to the RBI, SBI is required to keep 0.60 percent of its risk-weighted assets as Tier-1 equity, while for HDFC and ICICI Bank it is 0.20 percent of their risk-weighted assets.
Why is this list important
From the year 2015, RBI issues a list of such banks that are very important for the country’s financial system and economy and also keeps a close watch on it. Every year in August, the Reserve Bank ratings the banks according to their reach and their 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 on the basis of their performance till March 2022. In the years 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.
