In a major overhaul, the Central bank has decided to adopt the Risk-Based Deposit Insurance Premium (RBDIP) model instead of the existing flat rate premium model, aimed at strengthening banking infrastructure and reducing the risk.

RBI governor Sanjay Malhotra announced the decision to implement RBDIP in the MPC outcome meeting on October 01, 2025.

The Deposit Insurance and Credit Guarantee Corporation (DICGC), which is owned by the RBI, currently charges a flat premium of 12 paise per Rs 100 of deposits (0.12%), regardless of the bank’s risk profile.

The Risk-Based Deposit Insurance Premium (RBDIP) will help to link the premium based on the risk profile of each bank.

This means safer banks with strong capital, healthy liquidity, good governance, and better asset quality pay lower prem

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