Safest Banks In India – RBI releases list of Domestic Systemically Important Banks (D-SIBs)
As per the list issued by RBI – These are the D-SIBs
- State Bank Of India
- ICICI Bank and HDFC Bank
The first question is what are D-SIBs?
These are those interconnected entities that are considered crucial for an economy or in other words the failure of such entities could seriously disrupt the economy and cause instability, that is the reason RBI keep close supervision on these banks and has imposed few extra regulations for them.
In order to protect these banks from failure they are required to maintain a higher capital buffer and for such D-SIBs RBI has created a framework to regulate such banks, under this process, RBI issues a list of such banks and places them in an appropriate bucket and based on their position in bucket, certain extra regulations may also be imposed on them like maintaining higher buffer compared to other SIBs. As for SBI, there are certain extra regulations compared to HDFC and ICICI.
- SBI is on bucket list 3
- HDFC and ICICI Bank are on Bucket List 1
Note: You can check the data on RBI Website under press release 2022-2023/1481