Current Context: On December 2, 2025, the RBI identified SBI, HDFC Bank, and ICICI Bank as Domestic Systemically Important Banks (D‑SIBs).
- These banks are considered “too big to fail”, requiring higher capital buffers to protect the financial system.
- CET1 capital surcharge: SBI (0.80%), HDFC Bank (0.40%), ICICI Bank (0.20%).
- The surcharge is over and above the Capital Conservation Buffer (CCB).
- Framework for D‑SIBs was introduced by RBI in 2014, with annual disclosure mandated.
- Their size and interconnectedness mean failure could destabilize India’s economy.
- Significance: Ensures financial stability and resilience of the Indian banking sector.
Question:
Q.1 On December 2, 2025, the Reserve Bank of India identified which of the following banks as Domestic Systemically Important Banks (D-SIBs)?a) State Bank of India, Axis Bank, ICICI Bank
b) HDFC Bank, Axis Bank, Kotak Mahindra Bank
c) State Bank of India, HDFC Bank, ICICI Bank
d) Punjab National Bank, Bank of Baroda, Canara Bank
Answer: c) On December 2, 2025, RBI designated State Bank of India (SBI), HDFC Bank, and ICICI Bank as Domestic Systemically Important Banks (D-SIBs).
