Apparently all banks are safe, otherwise why would a citizen keep his money in an account there! Do not trust or leave your valuables in the bank locker day after day! Even when RBI presents the list of the safest banks in the country, the matter has to be seen with special importance.
State Bank of India, HDFC Bank and ICICI Bank have again been declared as Domestic Systemically Important Banks (D-SIBs) by the Reserve Bank of India. The Reserve Bank of India released the list of D-SIBS banks on Wednesday i.e. November 13. Last year also these three banks got the status of domestic systemically important banks. Banks included in the D-SIBS list are considered very important to the domestic system. Besides, they are also considered as the safest banks in the country. These are banks that are so critical to the system that their collapse could shock the entire economy. Such banks are so important that if something happens to them, the government itself will try to save them.
Reserve Bank of India has prepared the list of D-SIBS Banks based on the data received till March 31, 2024. Banks declared important for the domestic system are required to maintain Additional Common Equity Tier-1 (CET1). They have to maintain more Common Equity Tier 1 as per their bucket. It is capital through which risks can be easily managed. Banks included in the list of D-SIBs have to keep it higher.
Concept of D-SIBs was implemented in 2014 -
The Reserve Bank of India first adopted the concept of preparing a list of important banks for the domestic system 10 years ago in 2014. In 2015, State Bank of India followed by the following year i.e. 2016, ICICI Bank was placed in this list. HDFC Bank entered the list in 2017.
Which bank is in which bucket -
This time RBI has placed State Bank of India in bucket-4. Under which 0.80 per cent additional CET1 has to be maintained. At the same time, HDFC Bank also remains in bucket 2 and has to maintain a high CET1 of 0.40 per cent. ICICI Bank is placed in bucket 1, it has to maintain an additional 0.20 per cent in CET1 buffer. The new rules will come into effect from April 1, 2025.
