Reserve Bank of India (RBI) Central Board of Directors approved the risk-based deposit insurance framework for banks, in the 620th meeting held in Hyderabad on Friday. Governor Sanjay Malhotra chaired the meeting. In the October MPC meeting, central bank had proposed to introduce a risk based premium model which would help banks that are more sound to save significantly on the premium paid. The central bank had said that the detailed notification would be issued shortly, which would be effective from the next financial year.
Rewarding Prudence
The board also discussed the global and domestic economic situation and associated challenges.
Banking Outlook
They also reviewed the activities of central office departments and the draft report on Trend and Progress of Banking, 2024-25. Deputy Governors T. Rabi Sankar, Swaminathan J., Poonam Gupta, Shirish Chandra Murmu also attended the meeting.
Other directors of the board such as Nagaraju Maddirala, Secretary, Department of Financial Services; Satish K. Marathe, Revathy Iyer, Pankaj Ramanbhai Patel and Ravindra H. Dholakia were also present.