With the implementation of the 'Risk-Based Premium' (RBP) framework for all insured banks, the insurance premium payable by banks will depend on their risk rating. Urban Cooperative Banks (UCBs) that are under the Reserve Bank's 'Supervisory Action Framework' (SAF) or 'Prompt Corrective Action' (PCA) will have to pay a premium at the current 'card rate', i.e., 12 paise per Rs.100. The risk ratings and the effective premium rates applicable to banks will be kept confidential. It is mandatory for Statutory Auditors to verify and certify the assessable deposit data provided by the bank.
The Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly owned subsidiary of the Reserve Bank of India, has brought about an extremely important and far-reaching change in the banking sector. Effective from 1 April 2026, the Risk-Based Premium (RBP) framework has been implemented for all insured banks. Under this new system, the insurance premium that banks have to pay will now depend on their risk rating...(Read the full article in the August 2026 issue)