How many classifications are used by RBI to classify banks as Domestic Systemically Important Banks (D-SIBs)?

• A. 2
• B. 3
• C. 5
• D. 1

Answer: (C)

The D-SIBs banks are classified into 5 buckets. Bucket 1, Bucket 2, Bucket 3, Bucket 4 and Bucket 5. With Bucket 5 being the most important followed by rest in decreasing order.