The Reserve Bank of India (RBI) has recently released a list of three safest banks in India. This list is from banks that have been given the status of “domestic systemically important banks” (D-Sibs). D-Sibs means that these banks are so important that their failure can affect the financial system of the entire country. Therefore, these banks are also called “too big to fail”.
In this article, we will know what these three banks are, why are they called D-Sibs, and how safe your money is in them. Also, we will discuss the reasons behind this list and the characteristics of these banks.
What are the safest banks in India? (RBI list)
The three banks that RBI have declared “safest” are:
- State Bank of India (SBI)
- HDFC Bank
- ICICI Bank
These banks have been given D-Sibs status as they play an important role in the financial structure of the country.
What does D-Sibs mean?
- D-Sibs are banks that are so big and important that if they fail, it will affect the economy of the entire country.
- These banks are instructed to maintain additional capital so that they can face a financial crisis.
- The government and RBI keep these banks under special supervision so that their stability remains.
Overview Table: 3 safest banks in India
| Bank name | Speciality |
| State Bank of India (SBI) | India’s largest public sector bank |
| HDFC Bank | The largest and trusted bank in the private sector |
| ICICI Bank | Second largest bank in private sector |
| De-shaking | All three banks get D-Sibs status |
| Capital buffer requirement | SBI: 0.80%, HDFC: 0.40%, ICICI: 0.20% |
| The year of joining D-Chib | SBI: 2015, ICICI: 2016, HDFC: 2017 |
SBI: India’s largest public bank
State Bank of India (SBI) is topped the D-Sibs list. It is one of the largest banks of India not only in India but also in Asia.
Characteristics of SBI:
- SBI comes in Bucket 4, which means that it has to maintain an additional 0.80% capital.
- It is a government -owned bank, so investing in it is considered more safe.
- SBI has a broad network in both rural and urban areas.
Why trust SBI?
- This bank is also safe in financial crisis due to government guarantee.
- Its services and branches are available across the country.
HDFC Bank: The most trusted bank in private sector
HDFC Bank is placed in Bucket 2 and has to maintain an additional 0.40% capital. This bank is known for its digital services and customer satisfaction.
Specialty of HDFC Bank:
- It was the first private sector bank in India which was included in the D-SIBS list.
- HDFC is famous for its strong balance sheet and high profitability.
- Its digital services provide easy and fast transactions to customers.
Why choose HDFC Bank?
- Its high capital security makes it different from other private banks.
- It provides better interest rates and services to its customers.
ICICI Bank: Second largest bank in private sector
The ICICI Bank is placed in Bucket 1 and has to maintain an additional 0.20% capital. This bank is known for its corporate services and individual loans.
Features of ICICI Bank:
- It provides technically advanced services such as mobile banking and internet banking.
- Its strong balance sheet helps it to avoid financial crisis.
Why choose ICICI?
- It provides loans to customers at attractive interest rates.
- Its digital services are convenient for users.
How are D-Sibs selected?
RBI reviews D-Sibs every year in August. This process is based on the following criteria:
- Bank size: The larger the bank, the more important it will be.
- Inter-relation: its impact on other financial institutions.
- Financial status: Bank’s capital structure and risk management capacity.
Based on these criteria, RBI decides which banks will be D-Sibs.
Is your money safe in these banks?
These three banks are called “too big to fail”. This means that even if these banks come in any crisis, the government will take steps to save them.
Causes of safety:
- Government Support: Government -owned banks like SBI always get government support.
- High capital requirement: These banks need to maintain additional capital so that they can deal with any financial crisis.
- RBI Monitoring: RBI pays special attention to these banks so that their stability remains.
Some concerns related to these banks
Although these three banks are considered safe, there may be some risks:
- Changes in interest rates: Changes in interest rates can affect customers.
- Digital fraud: Increasing use of digital services can make cyber security a matter of concern.
- Economic recession: Economic recession may affect their profits.
conclusion
The list released by RBI made it clear that SBI, HDFC Bank, and ICICI Bank are India’s safest banks. Their “too big to fail” status makes them different from other banks. If you want to keep your money safe then you can trust these banks.
Disclaimer:
This article is written only for the purpose of giving information. The list of D-Sibs released by RBI is based on real and certified information. However, always assess your financial status and needs before investing.
