RBI had issued some guidelines for Domestic Systematically Important Banks D SIB Which of the follow...........

Economic Affairs Types of Banks and Banking

RBI had issued some guidelines for Domestic-Systematically Important Banks (D-SIB). Which of the following was the real aim behind notification?

To promote banking facilities in the rural areas.

To regulate private banks more efficiently.

To save financial system from any possible crisis.

Ensure stability in the financial market.

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Explanation:

Third option is correct.

Domestic-Systematically Important Banks (D-SIB) was issued to save financial system from any possible crisis.

D-SIB means that the bank is too big to fail. According to the RBI, some banks become systemically important due to their size, cross-jurisdictional activities, complexity and lack of substitute and interconnection. Banks whose assets exceed 2% of GDP are considered part of this group.