ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!

    Question

    What is the new deposit insurance premium framework

    approved by the Reserve Bank of India (RBI) to replace the flat-rate system?
    A Fixed-rate premium based on location Correct Answer Incorrect Answer
    B Premium based on bank size Correct Answer Incorrect Answer
    C Risk-based deposit insurance premium Correct Answer Incorrect Answer
    D Deposit insurance premium based on customer type Correct Answer Incorrect Answer
    E Premium based on transaction volume Correct Answer Incorrect Answer

    Solution

    The RBI approved a risk-based deposit insurance premium framework to replace the existing flat-rate system of 12 paise per тВ╣100 deposit. In this model, banks with lower risk profiles pay lower premiums, while riskier banks pay higher premiums. The aim is to encourage prudent risk-taking and reduce moral hazard.

    Practice Next
    More Beepedia Questions

    Relevant for Exams:

    ask-question
    9