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Corporate Laws Central Ministry of Finance Deposit Insurance and Credit Guarantee Corporation Act, 1961

DICGC issues lmplementation of Risk Based Premium (RBP) Framework

06-Feb-2026 | CO.DICG.lOD.No.S1803/04-01-046/2025-2026

DICGC has issued a circular on the implementation of the Risk-Based Premium (RBP) Framework, effective from 01st April 2026. Key Highlights: 1. The RBP framework includes a two-tier Risk-Based Rating Methodology, Risk Categorisation of banks and Risk-based premium, Effective Premium Rate, Rating Override Policy, Disclosure Policy and Review Policy. 2. Tier 1 Model applies to Scheduled Commercial Banks (SCBS) other than Regional Rural Banks (RRBs), and Tier 2 Model applies to RRBs, Rural Cooperative Banks [State Cooperative Banks (StCBs), District Central Cooperative Banks (DCCBs), and Urban Cooperative Banks (UCBs). 3. Quantitative Assessment for Tier 1 and 2 model banks will be based on objective financial parameters. 4. The latest available audited financial year-end data and supervisory rating will be used for arriving at the risk category of banks. 5. The RBP framework will also provide the benefits of vintage (signifying longer contribution to DICGC's Deposit Insurance Fund without any major stress events or claim payouts from DICGC). Kindly refer to the attached document for more information.

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