Safest Banks in India: Recently, America's Silicon Valley Bank recently collapsed. Because of this, individuals are now concerned about whether or not their money is secure in banks.
So, we will inform you today about the list of secure banks provided by the RBI in this news. People make bank deposits with their hard-earned cash. They do this because the money will come in handy during difficult times. However, it does occasionally happen that the bank itself sinks. The individual holding the money will then be left with nothing to do but shake his fist. Therefore, it is wise to confirm the security of the bank in front of you before giving someone your money.
The Reserve Bank published a list titled Domestic Systemically Important Banks (D-SIBs) 2022. The names of the nation's most secure banks are listed in this.
Are Indian banks in the same condition as Silicon Valley Bank?
RBI published a list on January 2 this year. On that day, the RBI published a list indicating which banks are secure for your money and which banks are not. You are aware that the entire Indian economy will suffer if even one large bank in a nation fails. The suffering experienced by the customers is varied.
Which banks are on this list?
The Reserve Bank of India's list of the safest banks includes the names of two private banks and one public institution. State Bank of India is the organization that represents the government in this. In addition, this list includes two banks from the private sector. These include ICICI Bank and HDFC Bank, among others. Consequently, you won't experience any issues even if your account is with HDFC Bank or ICICI Bank rather than SBI.
Which banks can come to this list?
Only banks that must retain additional Common Equity Tier 1 (CET1) and the customary capital conservation buffer are included in this list. The RBI states that SBI will be required to hold onto an additional 0.6 percent of its risk-weighted assets as CET1. Similar requirements apply to ICICI Bank and HDFC Bank, which must retain an extra 0.2%.
The Reserve Bank will keep a close look at these banks.
RBI closely monitors the banks in this list of Reserve Banks. The Reserve Bank closely monitors not only the regular operations of these institutions but also any sizable loans or accounts. Additionally, if a bank lends money for a significant project, that project is also considered. However, whether this will harm the bank's overall business is yet to be determined.
Since when is this list being issued?
Since 2015, the Reserve Bank has published a list of these banks. According to the Reserve Bank, such institutions are essential to the nation's economy. Therefore, the RBI rates these banks as well. The list of these important banks is only created after this grading. However, only the names of 3 banks have been added to this list thus far.