Current Affairs · Banking & Financial Sector Reforms
Regarding the transition of deposit insurance premiums from a flat-rate system to a Risk-Based Premium (RBP) framework effective April 1, 2026, which of the following best explains the strategic rationale and operational structure of this shift?
- 1To move away from a non-discriminatory pricing model toward one that actively incentivizes superior risk management and structurally rewards long-standing contributors who have operated without distress or claims.✓
- 2To implement a mandatory flat-rate increase to 15 paise per ₹100 of assessable deposits for all institutions to compensate for the higher risk of digital banking transactions.
- 3To transition all deposit-taking entities, including Payments Banks and Local Area Banks, to a Tier 1 assessment model based exclusively on supervisory ratings and potential DIF loss.
- 4To eliminate the card rate system entirely and replace it with a daily floating premium rate based on the bank's intraday liquidity coverage ratio.
Correct answer
To move away from a non-discriminatory pricing model toward one that actively incentivizes superior risk management and structurally rewards long-standing contributors who have operated without distress or claims.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Preparing for Current Affairs?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Want more practice questions on Banking & Financial Sector Reforms?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Current Affairs · Banking & Financial Sector Reforms