Remember the much talked about term “Too Big to fail”, that emerged in 2008 when the world economy went through a bad time? It basically referred to companies that were so large and important to a country’s economy that they couldn’t be allowed to go bankrupt.
RBI has come up with something similar for Indian Banks. SBI and ICICI have been designated as “Domestic Systemically Important Banks”. In other words, these banks are considered too big to fail.
What’s in it for you?
This move will lead to extra safeguards in the Indian Banking System and hopefully better oversight. For you, this means your bank accounts might be made more secure.