RBI for risk-based premium for deposit insurance

Strengthening oversight mechanisms key for regularly updating frameworks to incorporate emerging risks associated with digital payments, cybersecurity, and fintech innovations -- Swaminathan J, Dy Governor, RBI

Jaipur: Reserve Bank Deputy Governor Swaminathan J on Wednesday said implementation of risk-based premium for deposit insurance merits consideration as it will ensure that institutions with higher risk profiles contribute more to the insurance fund.

Speaking at a conference here, he also said that as the financial sector becomes more digitised, deposit insurers must work closely with regulators and supervisors to strengthen oversight mechanisms.