The Reserve Bank of India (RBI) has once again retained State Bank of India (SBI), HDFC Bank, and ICICI Bank in the list of Domestic Systemically Important Banks (D-SIBs).

The RBI has announced that SBI, HDFC, and ICICI Bank remain on the D-SIB list. These banks are so crucial to the economy that they are considered 'too big to fail'.

To ensure stability, these banks must hold extra Common Equity Tier 1 (CET1) capital. RBI mandates an additional 0.10% for ICICI, 0.40% for HDFC, and 0.80% for SBI.

If these banks fail, the entire financial system could collapse. So, the RBI and government tighten rules to ensure stability. A key rule is holding more CET1 capital.

RBI introduced the D-SIB framework in 2014 and has announced the list annually since 2015. It includes banks with a major impact on the nation's financial system.

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