Mumbai, Feb. 9 -- The Reserve Bank of India (RBI) has said it will replace the flat-rate deposit insurance premium with a risk-based framework from April this year. RBI announced that the framework, which replaces the flat-rate premium system in place since 1962, will be reviewed at least once every three years. Currently, banks pay a uniform premium of 12 paise per Rs 100 of assessable deposits. Under the new framework, banks will be classified into four risk categories-A, B, C and D- with category A representing the lowest risk. Premium rates will range from 8 paise to 12 paise per Rs 100 of assessable deposits, offering a discount of up to 33.3% to the strongest banks. RBI noted that the risk categorisation will be based on the latest ...
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