Which of the following statement s about D SIBs Domestic Systemically Important Banks is are correct...........

Economic Affairs Types of Banks and Banking

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Which of the following statement/s about D-SIBs (Domestic Systemically Important Banks) is/are correct?

1. D-SIBs are those banks which lend more than 50% of their Adjusted Net Bank Credit towards the priority sector.

2. Presently only SBI is classified as D-SIB in India.

Select the correct answer using codes given below

1 only

2 only

All of the above

None of the above

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Explanation:

...Both the statements are incorrect.
First statement is incorrect. 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. The RBI stated that should such a bank fail, there would be significant disruption to the essential services they provide to the banking system and the overall economy.
Second statement is incorrect As per RBI declaration 3 of the Indian Banks that include HDFC Bank, SBI and ICICI Bank are too big in size in respect of several parameters and hence have been brought up in this list of domestic systemically important bank.