BANKING AFFAIRS

Detailed explanation-1: -On Monday, the Reserve Bank of India (RBI) issued its list of Domestic Systemically Important Banks (D-SIBs) for 2021. In line with the 2020 list of D-SIBs, SBI, ICICI Bank, and HDFC Bank are still categorized as Domestic Systemically Important Banks (D-SIBs), according to the central bank.

Detailed explanation-2: -A D-SIB is a bank that is considered to be so important to the financial system that its failure could cause significant disruption. As a result, these banks are required to maintain higher capital buffers to protect against potential losses and ensure their stability.

Detailed explanation-3: -RBI releases 2022 list of Domestic Systemically Important Banks (D-SIBs) State Bank of India, ICICI Bank, and HDFC Bank continue to be identified as Domestic Systemically Important Banks (D-SIBs), under the same bucketing structure as in the 2021 list of D-SIBs.

Detailed explanation-4: -The D-SIBs banks are classified into 5 buckets. Bucket 1, Bucket 2, Bucket 3, Bucket 4 and Bucket 5. With Bucket 5 being the most important followed by rest in decreasing order. State Bank of India is in Bucket 3, while ICICI Bank and HDFC Bank are in Bucket 1.

Detailed explanation-5: -The RBI’s primary functions include acting as a banker’s bank, a custodian of foreign reserves, a credit controller, and overseeing the printing and circulation of currency notes. The Reserve Bank of India (RBI) seems to be the country’s central bank. The Reserve Bank of India is a government-owned corporation.