The 620th meeting of the Central Board of Directors of the Reserve Bank of India (RBI) was held on Friday in Hyderabad under the chairmanship of RBI Governor Sanjay Malhotra.
During the meeting, the Central Board reviewed the prevailing global and domestic economic conditions and deliberated on the emerging challenges confronting the economy and the financial system.
A key highlight of the meeting was the approval of the risk-based deposit insurance framework for banks; a significant reform aimed at strengthening the safety and resilience of the banking sector. The new framework is expected to align deposit insurance premiums more closely with the risk profile of individual banks, thereby promoting prudent risk management and enhancing overall financial stability.
The Board also reviewed the functioning and activities of select Central Office Departments of the Reserve Bank. In addition, it examined the draft Report on Trend and Progress of Banking in India, 2024-25, which provides an assessment of developments in the banking sector and the evolving regulatory landscape.
The meeting was attended by Deputy Governors T. Rabi Sankar, Swaminathan J., Dr. Poonam Gupta and Shirish Chandra Murmu. Other Directors present included Nagaraju Maddirala, Secretary, Department of Financial Services; Satish K. Marathe; Smt. Revathy Iyer; Pankaj Ramanbhai Patel; and Dr. Ravindra H. Dholakia.