D-SIBs in India: RBI’s Word on HDFC Bank
Why in the news
After the HDFC Bank chairman stepped down, the RBI told markets in March 2026 that the bank is still a D-SIB with sound governance and stability.
About D-SIBs
- Banks whose collapse could unsettle the financial system and economy; called too big to fail
- Large, widely connected with institutions, markets and the economy
Framework
- Introduced: 2014 by RBI
- Yearly test: Systemic Importance Score (SIS)
- Buckets: higher bucket, stricter requirements
- Extra buffer: Common Equity Tier-1 (CET1)
Why they matter
- Confidence and smooth credit flow
- Containing crises and contagion
- Tighter supervision, recovery and resolution planning
Types of banks
| Basis | Types |
|---|---|
| Ownership | Public, private, foreign |
| Function | Commercial, small finance, payments |
| Regulatory | Scheduled/non-scheduled; differentiated |
D-SIB status cuts across all of these.
Exam angle
- 2014, SIS, CET1, higher bucket means more capital.