After SBI And ICICI, HDFC Bank Gets 'Too Big To Fail' Status: 5 Things To Know

The Reserve Bank of India (RBI) on Monday added HDFC Bank to a list of "domestic systemically important banks", or the equivalent of "too big to fail". HDFC Bank, the second-biggest Indian lender by assets, joins top lender SBI and ICICI Bank in the list referred to as D-SIB or domestic systemically important bank.  Being named systemically important imposes additional capital requirements on the lenders. The extra capital requirement for HDFC Bank will be applicable beginning April 1, 2018, RBI said. 

Here are 5 things to know about 'Too Big To Fail' Status

1) The RBI had earlier announced SBI and ICICI Bank as domestic systemically important banks. With the inclusion of HDFC Bank in the list, there are now three 'too big to fail' financial entities in the country.

2) Systemically important banks are subjected to higher levels of supervision so as to prevent disruption in financial services in the event of any failure.

3) The Reserve Bank had issued the framework for dealing with Domestic Systemically Important Banks (D-SIBs) in 2014.  The D-SIB Framework requires the Reserve Bank to disclose the names of banks designated as D-SIBs and place these banks in appropriate buckets depending upon their systemic importance scores. 

4) Based on the bucket in which a D-SIB is placed, an additional common equity requirement has to be applied to it. 

5) In case a foreign bank having branch presence in India is a global systemically important bank (G-SIB), it has to maintain additional CET1 capital surcharge in India as applicable to it as a G-SIB, proportionate to its risk weighted assets (RWAs) in India, says an RBI statement. (With agency inputs)

Source: RBI

Latest Update from ICAI President (31st August)

As you may be aware, CA profession is undergoing a rapid transformation and CA professionals are producing excellence in a variety of professional fields and spheres challenging the stereotype.

Emerging borderless economies, surge in IT development and resulting complexities, increasing emphasis on CSR, and, above all, increasing strategic importance of CA professionals as complete business solution provider, have all contributed to this transformation.

At ICAI, we are in the final stages of implementing a new scheme of education and training with an objective to prepare more competent, better equipped and more responsible generation of chartered accountants. Nelson Mandela said: Education is the most powerful weapon which you can use to change the world.

In line with the relevant International Education Standards of IFAC, this new course curriculum has been designed to benchmark the Indian CA education with the best in the world and make our students and future members of the CA fraternity more competent and multifarious professionals, and enablers of compliance and fiscal discipline.

CA New Syllabus 2017 | Direct Entry Route

Revised Scheme: Route II – Direct Entry Route

The ICAI allows Commerce Graduates/Post-Graduates (with minimum 55% marks) or Other Graduates/Post-Graduates (with minimum 60% marks) and Intermediate level passed students of Institute of Company Secretaries of India and Institute of Cost Accountants of India to enter directly to its Intermediate Course. The following steps are required to be undertaken by the eligible Graduates and Post Graduates under this route:

1. Register with the BOS for the Intermediate course (provisional registration allowed to the students doing Final year of graduation).

2. Successfully complete Four Weeks Integrated Course on Information Technology and Soft Skills (ICITSS) before commencement of the practical training.

3. Register for Three Years Practical Training.

4. Appear in Intermediate Examination after Nine months of Practical Training.

5. Qualify Intermediate Course.

6. Register for the Final Course after qualifying both Groups of Intermediate Course.

7. Successfully complete Four Weeks Advanced ICITSS during the last two years of Practical Training.

8. Complete Practical Training.

9. Appear in Final examination after completion of practical training and Advanced ICITSS.

10. Become Member

Note: Candidates who have passed Intermediate level examination of ICSI or ICWAI and enter the CA Intermediate course directly shall be treated at par with Foundation passed students and shall have to undergo the CA course in the manner ak into the Foundation passed students.

Source: https://www.ca-online.in/ca-syllabus-details/