Question

    Which of the following banks have been named as the

    Domestic Systematically Important banks by RBI for 2021?
    A SBI and HDFC bank Correct Answer Incorrect Answer
    B SBI, HDFC Bank and PNB Correct Answer Incorrect Answer
    C SBI, PNB and ICICI Bank Correct Answer Incorrect Answer
    D SBI, HDFC bank and ICICI Bank Correct Answer Incorrect Answer
    E SBI, PNB, HDFC Bank and ICICI Bank Correct Answer Incorrect Answer

    Solution

    The Domestic Systematically Important banks (D-SIB) or banks which are “too big to fail” are SBI, HDFC Bank and ICICI Bank. These banks have to keep additional Common Equity Tier 1 capital. SBI has to keep additional capital of 0.6% of bank’s risk weighted assets while HDFC bank and ICICI bank have to keep 0.2% additional buffer.

    Practice Next