RBI proposes risk-based deposit insurance premium structure for banks

The Reserve Bank of India (RBI) has proposed a significant change in the deposit insurance framework.

Currently, the insurance premium is charged at a flat rate. However, the RBI suggests moving towards a risk-based deposit insurance premium structure.

This shift aims to align insurance premiums more closely with the risk profile of individual banks, promoting greater financial stability and accountability.

The proposed change is expected to encourage banks to adopt safer practices and reduce the overall risk in the banking sector.
https://www.newsbytesapp.com/news/business/rbi-to-introduce-risk-based-deposit-insurance-premium/story