RBI Approves Risk-Based Deposit Insurance for Banks, Reviews Banking Progress Report

• RBI's Central Board approved a risk-based deposit insurance framework for banks on December 19.
• The board reviewed the draft Report on Trend and Progress of Banking in India, 2024-25.
• Discussions also covered global and domestic economic situations and associated challenges.
• The decisions were made during the 620th meeting, chaired by Governor Sanjay Malhotra.
• Key attendees included Deputy Governors T. Rabi Sankar, Swaminathan J., Poonam Gupta, Shirish Chandra Murmu, and other Central Board Directors.

Why It Matters: RBI strengthens banking stability with new risk-based deposit insurance and reviews economic outlook.