Domestic systemically important bank

Question 1

WHat are Domestic systemically important bank(D-SIB)

Answer 1

They are the banks that have the status of Too Big To Fail by RBI

Question 2

What is the min qualification for that

Answer 2

1 2% of country GDP should be their assets
2 Large Size
3 Interconnection and lack of substitution

Question 3

What is the responsiblity of bank with that status

Answer 3

It has to maintain additional Tier 1 capital

Question 4

Why in news

Answer 4

IDBI has also got this status now,

So now total 4 banks have the status,
1 SBI
2 ICICI
3 HDFC
4 IDBI