RBI Keeps SBI, ICICI, HDFC as Domestic Systemically Important Banks
RBI Keeps SBI, ICICI, HDFC as Domestic
Systemically Important Banks
Why In News
The Reserve Bank
of India said SBI, ICICI Bank, HDFC Bank remain domestic systemically important
banks (D-SIBs).
Key Points
The Reserve Bank
of India said SBI, ICICI Bank, HDFC Bank remain domestic systemically important
banks (D-SIBs). D-SIBs are those interconnected entities whose failure can
impact the whole of the financial system and create instability. In addition to
the usual capital conservation buffer, D-SIBs will need to maintain additional
Common Equity Tier 1 (CET1). As per the RBI’s latest press release, SBI will
have to maintain an additional 0.6 per cent CET1 as a percentage of its
risk-weighted assets. Similarly, ICICI Bank and HDFC Bank need to maintain
additional 0.2 per cent each.
The additional CET1
required for D-SIBs was phased-in from April 1, 2016 and became fully effective
from April 1, 2019. The additional CET1 requirement will be in addition to the
capital conservation buffer.
The Reserve Bank had
issued the framework for dealing with D-SIBs on July 22, 2014. The D-SIB
framework requires the Reserve Bank to disclose the names of banks designated
as D-SIBs starting from 2015 and place these banks in appropriate buckets
depending upon their Systemic Importance Scores (SISs). Based on the bucket in
which a D-SIB is placed, an additional common equity requirement has to be
applied to it.
The Reserve Bank had
announced SBI and ICICI Bank as D-SIBs in 2015 and 2016. Based on data
collected from banks as on March 31, 2017, HDFC Bank was also classified as a
D-SIB, along with SBI and ICICI Bank. The current update is based on the data
collected from banks as on March 31, 2022.
Domestic Systemically Important Banks:
D-SIBs are financial
institutions that are large enough where they cannot be allowed to fall.
RBI places D-SIBs in
appropriate buckets depending upon their Systemic Importance Scores
(SISs).
The central bank’s
current update on D-SIBs is based on the data collected from banks as of
March 31, 2021.
A failure of any of
these banks can lead to systemic and significant disruption to essential
economic services across the country and can cause an economic panic.
Based on the bucket
in which a D-SIB is placed, an additional common equity requirement is applied
to it.
Under bucket
1, banks require 0.2 per cent of additional common equity Tier 1
capital as a percentage of risk-weighted assets (RWAs), and
under bucket 3, banks require 0.6 percent of additional common
equity Tier 1 capital as a percentage of RWAs.
SBI is placed in
the third bucket and private sector lenders ICICI Bank and HDFC Bank
fall under bucket 1.
Biggest Space Missions in 2023- Chandrayaan-3 to Gaganyaan
Biggest Space Missions in 2023-
Chandrayaan-3 to Gaganyaan
Why In News
ISRO's Biggest Space
Missions in 2023: ISRO's biggest year could be 2023 as the launch of Aditya L1,
Gaganyaan and Chandrayaan-3 by ISRO are all set for 2023.
Key Points
In 2022, the Indian
Space Research Organization (ISRO) reached new heights as it experimented with
new tests to confirm its human spaceflight mission, built new facilities to
train its astronauts, and created a new connection with the private sector by putting
India’s first privately made rocket to the test. The year 2023 won’t be any
different. Instead, since the roster is set, it might be a year of bigger,
bolder, and braver expeditions from India to space.
The first test of the
Gaganyaan mission, the nation’s first astronaut mission that sends Indians
outside the planet in an indigenously manufactured technology, is the most
audacious venture the Indian space agency has ever undertaken.
In 2023, ISRO will
also carry out the first test flight of its most ambitious mission, Gaganyaan.
The crewed launch has
been delayed until 2024, although the Indian space agency may launch the
unmanned “G1” mission in the final quarter of 2023 and the “G2” mission in the
first half of 2024.
The Gaganyaan
programme’s “G1” mission’s inaugural unmanned flight is intended to assess how
well the launch vehicle, orbital module propulsion system, mission control,
communication system, and recovery procedures operate when used by humans.
The Indian Air Force
astronaut designate has already finished their first semester of training,
which included modules on theoretical foundations, space medicine, launch
vehicles, spacecraft systems, and ground support infrastructure.
India is trying to
create its first Runway Landing Experiment in the style of the American shuttle
flights (RLV-LEX).
The Aeronautical Test
Range in Karnataka’s Chitradurga could be used to test the mission.
Last month, Science
& Technology Minister Dr. Jitendra Singh updated the Parliament on the
mission’s progress.
According to ISRO,
the configuration of the RLV-TD combines the complexity of both launch vehicles
and aeroplanes and is comparable to that of an aircraft. The winged RLV-TD has
been designed to serve as a flying test platform for assessing a variety of
technologies, including powered cruise flight, autonomous landing, and
hypersonic flight. This vehicle will eventually be enlarged to serve as the
first stage of India’s reusable two-stage orbital launch vehicle.
ISRO, Andhra
University to Set up Equipment Along Beaches to Predict Rip Currents
India has prepared a
mission for the same, while Europe and the US have previously launched probes
to learn more about the physics of the Sun and the evolution of the star at the
centre of our solar system.
In 2023, the Aditya
L1 mission will launch to the first Lagrange point (L1). The Solar and
Heliospheric Observatory Satellite SOHO from NASA is now based at the L1 point
of the Earth-Sun system, which offers a continuous view of the sun.
The advantage of
regularly watching solar activity is greater from this position.
Aditya-L1 is equipped
with seven payloads that use particle and electromagnetic detectors to study
the photosphere, chromosphere, and the Sun’s outermost layers (the corona). The
remaining three payloads conduct in-situ investigations of particles and fields
at the Lagrange point L1, while the remaining four payloads observe the Sun
directly from the exceptional advantage point of L1.
ISRO to Carry US
Instrument on Board the Forthcoming Chandrayaan 3 mission
Biggest Space
Missions in 2023 by ISRO: Chandrayaan-3
India is prepared to
launch the successor of its most successful lunar orbital probe after NASA
completed the first launch of the Artemis-1 mission.
In June of this year,
Chandrayaan-3 is scheduled to launch on the GSLV Mk-III.
As ISRO continues to
test the rover, which is anticipated to be more durable than the previous two
missions, the mission has been postponed.
The mission will make
use of the orbiter from Chandrayaan-2, which crashed-landed on the moon, even
though it is not a copy of that mission.
According to ISRO
Chairman S. Somnath, the engineering on spacecraft has changed dramatically,
and it has been strengthened to prevent problems like the ones from the
previous launch.
SpaceX Launched First
54 Starlink v2.0 satellites Into Low Earth orbit
The Small Satellite
Launch Vehicle (SSLV) test by ISRO in 2023, despite not meeting all
expectations, cleared the way for the space agency to pursue the billion-dollar
small satellite industry.
The launch of the
first privately constructed rocket by Skyroot Aerospace last year is a
significant illustration of how ISRO has been empowering and assisting private
aerospace enterprises, especially startups.
With increasing investment
and the emergence of cutting-edge technologies, the private sector is
anticipated to push farther into the space exploration age.
ISRO’s biggest year
could be 2023, and if all goes as planned, the next year will feature a lot
more countdowns, liftoffs, and science.