Current Affairs · Banking & Financial Sector Reforms

Based on the provisions of the new risk-based premium framework introduced by the Deposit Insurance and Credit Guarantee Corporation (DICGC), which of the following statements is/are correct? 1. Under the new rating system (Categories A to D), Category B banks are eligible for a 16.67% discount, resulting in a premium of 10 paise per ₹100 of deposits. 2. The shift to a risk-based model is intended to reduce moral hazard and promote prudential risk management by ensuring that riskier banks pay higher premiums than well-managed ones. 3. To strengthen the Deposit Insurance Fund, Category D banks will be subject to a revised premium of 14 paise per ₹100 of deposits, as they are ineligible for any discounts.