Module: General Practice
Q15: What is the transition rule for a D-SIB whose Systemic Importance Score (SIS) falls below the threshold for its current bucket?
✅ Correct Answer: B
To ensure stability in capital planning and avoid volatility, the RBI requires a bank's score to stay in a lower range for two consecutive years before permitting a downward bucket shift.
This prevents frequent reclassification of a Domestic Systemically Important Bank (D-SIB).
This prevents frequent reclassification of a Domestic Systemically Important Bank (D-SIB).