RBI Annual Report FY 2025-26 covers banking supervision, fraud risk, enforcement actions, RB-IOS 2026, consumer protection, DICGC and deposit insurance reforms.
The RBI Annual Report FY 2025-26 shows a clear shift towards forward-looking, risk-based and technology-enabled supervision of banks and other regulated entities. During the year, RBI strengthened liquidity stress testing, cyber-risk supervision, fraud monitoring, KYC/AML supervision and supervisory data quality.
At the enforcement level, 241 penalties amounting to ₹26.33 crore were imposed. On the consumer side, RB-IOS 2026 was issued, the Internal Ombudsman framework was strengthened, and cooperative banks were brought within the Reserve Bank Ombudsman framework. Meanwhile, DICGC’s deposit insurance architecture covered 1,950 insured banks, with the insurance limit remaining at ₹5 lakh per depositor and a new Risk Based Premium Framework becoming effective from April 1, 2026. These are extremely important areas for RBI Grade B Promotion Exam, RBI Grade B, UPSC, IBPS and banking interviews.
1. RBI Annual Report FY 2025-26 – RBI’s Supervisory Architecture
The RBI’s supervisory framework covers a wide range of financial entities.
The Department of Supervision (DoS) supervises:
- Scheduled Commercial Banks, excluding RRBs;
- Local Area Banks;
- Payments Banks;
- Small Finance Banks;
- Core Investment Companies;
- All India Financial Institutions;
- Urban Cooperative Banks;
- NBFCs, excluding Housing Finance Companies; and
- Asset Reconstruction Companies.
Since 2019, supervision of banks, UCBs and NBFCs has been undertaken under the unified Department of Supervision, enabling a more holistic supervisory approach.
2. From Compliance Checking to Risk-Based Supervision
The important change is conceptual.
Traditional supervision can ask:
“Has the entity complied with the prescribed requirement?”
Risk-based supervision asks a deeper question:
“Where are the institution’s most important vulnerabilities, and how could they affect the institution and the wider financial system?”
During FY 2025-26, RBI continued moving towards:
- forward-looking stress testing;
- risk-based supervision;
- cyber-risk mapping;
- data-quality assessment;
- thematic inspections; and
- technology-enabled supervisory analytics.
This approach seeks to identify vulnerabilities before they become systemic problems.
3. Bank Liquidity Stress Testing: A Major Upgrade
One of the most important supervisory developments was the enhancement of the liquidity-risk stress-testing framework for banks.
The earlier approach based on reverse liquidity stress testing was enhanced into a forward-looking model.
The new framework estimates:
- survival horizon, or
- days to failure
based on projected cash inflows and outflows.
4. How the New Liquidity Model Works
The model applies common stress scenarios with different:
- run-off rates; and
- asset haircuts
to individual banks.
It then evaluates whether the bank can meet short-term obligations during a crisis.
The framework also maps a bank’s survival horizon against:
- extent of insured deposits; and
- concentration of funding.
Banks with:
high funding concentration + low insured deposits + short survival horizon
would receive greater supervisory attention.
5. Why the 2023 Banking Turmoil Matters
The revised framework incorporates lessons from the global banking turmoil of March–May 2023.
The Annual Report specifically notes that institutions with:
- high uninsured deposits; and
- high funding concentration
can become vulnerable during periods of liquidity stress.
The new stress-testing model is implemented semi-annually and presented before the Board for Financial Supervision.
Exam Concept
Liquidity stress testing → survival horizon → funding concentration → insured deposits → supervisory intervention
6. Supervisory Rating Models
RBI also strengthened supervisory frameworks for specialised banking institutions.
A separate supervisory rating model for Small Finance Banks (SFBs) was developed for implementation from the 2026-27 supervisory cycle.
The supervisory rating model for Asset Reconstruction Companies (ARCs) was also reviewed.
The need for a separate supervisory rating model for Payments Banks was being examined.
7. Digital Banking Resilience
As banking becomes increasingly digital, service availability itself becomes a supervisory concern.
RBI therefore worked on a:
Service Availability and Resilience Framework for Digital Banking Channels.
The framework is intended to establish key resilience-related parameters for digital services offered by regulated entities.
A related initiative was the development of Digital Forensic Readiness requirements.
8. Real-Time Monitoring of Digital Banking Services
RBI also explored a dynamic online dashboard to provide near-real-time information on the availability of selected digital banking services.
The pilot was being evaluated through the Indian Banks’ Association (IBA) and involved:
10 banks.
This illustrates an important supervisory evolution:
Periodic inspection → continuous/near-real-time monitoring
9. Fraud in the Banking System: The Big Numbers
Fraud statistics deserve special attention.
During 2025-26, banks and financial institutions reported:
10,114 fraud cases
involving:
₹48,021 crore
compared with:
| Year | Number of Frauds | Amount Involved |
|---|---|---|
| 2023-24 | 35,800 | ₹11,013 crore |
| 2024-25 | 23,722 | ₹32,803 crore |
| 2025-26 | 10,114 | ₹48,021 crore |
This creates an important exam observation:
Number of frauds fell sharply, but the amount involved increased substantially.
10. Why the Fraud Numbers Need Careful Interpretation
Do not interpret ₹48,021 crore as the actual loss suffered by banks.
The Annual Report specifically cautions that:
- amount involved does not necessarily equal loss;
- recoveries can reduce actual loss;
- the entire amount involved may not have been diverted; and
- reported figures can subsequently change due to revisions.
There is another important statistical caveat.
The 2025-26 figures included 314 cases involving ₹30,199 crore relating to previous financial years, which were reported afresh during the year after re-examination and compliance with the Supreme Court’s March 27, 2023 judgment.
This is a very important analytical qualification.
11. Which Bank Group Had the Largest Fraud Amount?
In 2025-26:
Public Sector Banks
- 5,418 cases
- ₹35,709 crore
Private Sector Banks
- 3,956 cases
- ₹11,399 crore
Foreign Banks
- 210 cases
- ₹290 crore
Financial Institutions
- 13 cases
- ₹498 crore
Small Finance Banks
- 467 cases
- ₹114 crore
Payments Banks
- 47 cases
- ₹11 crore
PSBs accounted for 74.5% of the amount involved in reported frauds during 2025-26.
12. Advances Were the Dominant Fraud Category by Value
The area-wise data are even more revealing.
In 2025-26:
Advances → 8,640 frauds → ₹40,774 crore
This represented:
- 85.5% of fraud cases
- 84.9% of amount involved.
Compare this with card/internet/digital payments:
293 cases → ₹29 crore
The number of digital-payment-related frauds was much smaller than in earlier years, while advances became the dominant category by value.
13. Fraud: Number vs Value
This distinction is exam-worthy.
Card/Internet/Digital Payments
Historically:
high number of cases
but relatively smaller amount involved.
Advances
Historically:
fewer cases than digital/card fraud
but much larger financial value.
Therefore, an examiner may ask:
Which category accounted for the largest share of frauds by amount in 2025-26?
Answer:
Advances.
14. RBI’s Response to Cyber-Enabled Fraud and Money Mules
RBI adopted a multi-dimensional response.
Regulatory measures
- consolidated KYC Directions, 2025;
- Fraud Risk Management framework;
- revised Payment Aggregator directions;
- Digital Payments Security Controls.
Supervisory measures
- full-scope KYC and AML/CFT inspections;
- thematic assessments;
- corrective-action engagement.
Technology
- AI/ML tools;
- MuleHunter.ai;
- bank.in;
- HaRBInger;
- Regulatory Sandbox.
Awareness
- multimedia campaigns;
- digital-arrest prevention;
- awareness about the 1930 helpline;
- awareness about risks of renting bank accounts.
Coordination
RBI worked with:
- I4C;
- Ministry of Home Affairs;
- Ministry of Finance;
- Department of Telecommunications;
- FIU-IND;
- TRAI; and
- law-enforcement agencies.
15. The Technology–Supervision Connection
This is where Part 17 and Part 18 connect.
Part 17 examined RBI’s innovation infrastructure.
Part 18 shows how the same technology is increasingly being incorporated into supervision and fraud prevention.
The progression is:
Digitalisation → new risks → data → AI/ML → supervisory intelligence → faster intervention
Therefore, RBI’s FinTech strategy and supervisory strategy are not separate silos.
They increasingly reinforce each other.
16. Cyber Range at IDRBT
RBI operationalised the Cyber Range initiative through a platform deployed at the Institute for Development and Research in Banking Technology (IDRBT).
The platform enables supervised entities to conduct cyber-drill exercises using simulated scenarios, including incidents observed or reported across supervised entities.
The purpose is to strengthen:
- preparedness;
- response capability; and
- resilience against emerging cyber threats.
17. AI Risk in Supervised Entities
RBI also conducted a thematic study on:
adoption of AI in supervised entities.
For 2026-27, RBI proposed a thematic review specifically examining:
cyber risks arising from the use of AI tools and systems by supervised entities.
This is an important development.
AI is therefore being viewed simultaneously as:
a solution to financial risks
and
a potential source of new risks.
18. Risk-Based KYC/AML Supervision
RBI continued strengthening risk-based KYC/AML supervision.
For selected UCBs, a revised framework covered entities accounting for approximately:
60% of total UCB-sector deposits.
The framework places greater emphasis on:
- off-site risk assessment;
- risk profiling;
- inherent KYC risks;
- money-laundering risks;
- terrorism-financing risks; and
- emerging sector-wide risks.
19. NBFC Supervision
For NBFCs, RBI recalibrated the off-site risk-assessment model.
The revised approach takes into account the:
- varied business models; and
- heterogeneous nature
of the NBFC sector.
RBI also examined pricing practices, including:
- interest rates;
- processing fees; and
- accuracy of Annual Percentage Rate disclosures in Key Fact Statements.
The objective was to identify cases where borrowers could be charged excessively.
20. Supervisory Data Quality Index — sDQI
RBI began publishing Supervisory Data Quality Index (sDQI) scores on a quarterly basis from June 2025.
sDQI measures the quality of supervisory returns across four dimensions:
- Accuracy
- Completeness
- Timeliness
- Consistency
This is a highly testable definition.
Memory Trick
A-C-T-C
Accuracy → Completeness → Timeliness → Consistency
21. Why sDQI Matters
Supervision is only as good as the data on which it is based.
Poor-quality supervisory data can lead to:
- incorrect risk assessment;
- delayed identification of vulnerabilities; and
- inefficient supervisory intervention.
Therefore:
Better data quality → better supervisory intelligence → better risk management
22. RBI Enforcement Department
The Enforcement Department exists to separate enforcement action from the supervisory process and establish a structured, rule-based mechanism for dealing with violations.
Its objective is not simply to punish.
Enforcement supports:
- regulatory compliance;
- financial stability;
- public interest; and
- consumer protection.
23. Enforcement Actions in FY 2025-26
During FY 2025-26:
241 penalties
were imposed.
Total penalties:
₹26.33 crore
The process involved:
- 342 show-cause notices
- 698 charges
- 382 charges resulting in monetary penalties
- 316 charges with no enforcement action.
24. Enforcement by Regulated Entity
| Regulated Entity | Penalties | Amount |
|---|---|---|
| Public Sector Banks | 13 | ₹9.05 cr |
| Private Sector Banks | 14 | ₹7.93 cr |
| Foreign Banks | 3 | ₹1.14 cr |
| Payments Banks | 2 | ₹0.61 cr |
| Small Finance Banks | 1 | ₹1.00 cr |
| RRBs | 2 | ₹0.41 cr |
| Cooperative Banks | 172 | ₹4.12 cr |
| NBFCs | 25 | ₹1.76 cr |
| Housing Finance Companies | 6 | ₹0.04 cr |
| Payment System Operators | 3 | ₹0.27 cr |
| Total | 241 | ₹26.33 cr |
Exam Trap
Cooperative banks accounted for the largest number of penalties: 172.
But PSBs accounted for the largest penalty amount among the listed entity categories: ₹9.05 crore.
25. Consumer Protection: RBI’s Institutional Framework
The Consumer Education and Protection Department (CEPD) is responsible for:
- policy frameworks for grievance resolution;
- monitoring internal grievance mechanisms;
- administering the Reserve Bank-Integrated Ombudsman Scheme;
- overseeing Consumer Education and Protection Cells;
- consumer awareness; and
- promoting secure banking practices.
The RB-IOS operates through a nationwide network of:
24 Ombudsman offices
26. RB-IOS 2026
Based on:
- operational experience;
- stakeholder feedback; and
- global best practices,
RBI comprehensively reviewed the RB-IOS, 2021.
The result was:
Reserve Bank-Integrated Ombudsman Scheme, 2026
issued on:
January 16, 2026.
This is a very important date for objective examinations.
27. Internal Grievance Redressal
RBI also moved towards consolidating instructions relating to the internal grievance redressal mechanism of regulated entities through a proposed Master Direction.
The logic is straightforward:
Customer complaint → internal resolution first → Ombudsman mechanism where applicable
The objective is to make grievance resolution faster and more consistent.
28. CMS 2.0 — Next Generation Complaint Management
RBI is developing:
Complaint Management System 2.0 (CMS 2.0)
The new system is intended to leverage technological advancements to improve:
- user-centricity;
- accessibility;
- usability;
- business-process optimisation; and
- quality of outcomes.
This is another example of technology being used not merely for payments or credit, but for consumer protection.
29. Internal Ombudsman Directions, 2026
The Internal Ombudsman Directions were issued on:
January 14, 2026
for different categories of regulated entities.
The objective was to facilitate faster and more meaningful resolution of customer grievances at the regulated-entity level.
30. Cooperative Banks and RBI Ombudsman
A significant inclusion occurred on:
November 1, 2025
when central and state cooperative banks were brought within the ambit of the RB-IOS 2021.
This enabled their customers to access the Reserve Bank Ombudsman mechanism.
This is especially important for financial inclusion because cooperative banks serve a large rural and semi-urban customer base.
31. Special Grievance Resolution Campaign
Beginning January 1, 2026, RBI initiated a special two-month campaign aimed at resolving grievances pending for more than one month with the Reserve Bank Ombudsman.
This demonstrates that RBI’s consumer-protection approach combines:
regulation + technology + institutional escalation + targeted campaigns.
32. DICGC: The Depositor’s Safety Net
The Deposit Insurance and Credit Guarantee Corporation (DICGC) is a wholly owned subsidiary of RBI established under the:
DICGC Act, 1961.
Its deposit insurance scheme aims to:
- protect depositors;
- preserve public confidence in banks; and
- contribute to financial stability.
Deposit insurance is mandatory for banks licensed by RBI, covering both:
- commercial banks; and
- cooperative banks.
33. How Many Banks Were Insured?
As on March 31, 2026, DICGC covered:
1,950 insured banks
comprising:
- 124 commercial banks
- 1,826 cooperative banks
The commercial-bank figure included:
- 11 SFBs;
- 6 Payments Banks;
- 28 RRBs; and
- 2 LABs.
The cooperative-bank figure included:
- 1,440 UCBs;
- 34 StCBs; and
- 352 DCCBs.
34. Deposit Insurance Limit
The current deposit insurance coverage is:
₹5 lakh per depositor per bank
for deposit accounts held:
“in the same capacity and in the same right.”
This remains one of the most important banking-awareness facts.
35. What Does ₹5 Lakh Coverage Actually Mean?
The insurance limit applies to the depositor’s eligible deposits subject to the prescribed aggregation principle.
It is not ₹5 lakh for every separate account in the same bank merely because the customer maintains multiple accounts.
The key phrase to remember is:
Same capacity + same right
This is frequently tested conceptually.
36. Extent of Deposit Insurance Coverage
As on September 30, 2025:
Fully insured accounts
291.4 crore
These represented:
97.5% of total accounts
So, by number of accounts, the overwhelming majority were fully insured.
37. But Value Coverage Is Different
In value terms:
Insured deposits = ₹1,04,09,023 crore
This represented:
41.1% of assessable deposits
This distinction is crucial:
97.5% by number of accounts
but only
41.1% by value of assessable deposits.
Why?
Because large deposits can exceed the ₹5 lakh insurance ceiling.
38. DICGC Reserve Ratio
The DICGC reserve ratio was:
2.37%
as on September 30, 2025.
It was:
2.21% a year earlier.
The reserve ratio is:
Deposit Insurance Fund / Insured Deposits
39. DICGC Premium
During 2025-26, DICGC levied a flat premium of:
0.12% per annum
on total assessable deposits.
Premium received during FY 2025-26:
₹29,947 crore
up 11.9% from ₹26,764 crore a year earlier.
Conversion
0.12% = 12 paise per ₹100
of assessable deposits per annum.
40. The Big DICGC Reform: Risk Based Premium
A major development was introduction of the:
Risk Based Premium (RBP) Framework
under Section 15(1) of the DICGC Act, 1961.
It became effective:
April 1, 2026
The basic idea is:
Banks with different risk profiles need not necessarily pay the same insurance premium.
Thus:
higher risk → relatively higher premium
and
better-managed/safer bank → lower premium
subject to the framework.
41. Two-Tier Risk-Based Methodology
The new framework provides a two-tier risk-based rating methodology for:
Tier 1
Scheduled Commercial Banks other than RRBs
Tier 2
RRBs + rural cooperative banks + UCBs
It also provides a vintage discount for banks that have contributed to the DICGC fund for a longer period without major stress events or claim payouts.
Thus, better-managed banks can pay lower premiums than the existing flat rate of 12 paise per ₹100 of assessable deposits.
42. Why Risk-Based Premium Is Important
The reform changes the incentive structure.
Earlier approach
Uniform premium
regardless of differences in risk profile.
New approach
Risk-sensitive premium
linked to the bank’s risk characteristics.
This can create stronger incentives for banks to:
- improve risk management;
- maintain sound governance;
- reduce vulnerabilities; and
- avoid stress events.
Therefore, DICGC is moving from a largely uniform pricing approach towards a more risk-sensitive insurance framework.
43. Deposit Insurance Fund
DICGC maintains the:
Deposit Insurance Fund (DIF)
It is used to settle depositor claims when insured banks are:
- liquidated;
- amalgamated; or
- placed under all-inclusive directions,
as applicable.
The Fund is built from the surplus of DICGC’s income over expenditure, including:
- premiums received;
- investment income; and
- recoveries from liquidation of failed-bank assets,
after relevant expenses and taxes.
44. Claims Settled During FY 2025-26
During 2025-26:
₹1,988 crore
of claims were settled.
These related to:
72 UCBs
that were either liquidated or placed under all-inclusive directions.
45. Size of the Deposit Insurance Fund
As on March 31, 2026:
DIF = ₹2,61,823 crore
This represented:
14.4% year-on-year growth
from ₹2,28,933 crore at end-March 2025.
46. Banking Supervision + Consumer Protection + DICGC: One Framework
These three areas should not be studied independently.
Consider the sequence:
Step 1 — Supervision
RBI identifies risks in banks and financial institutions.
↓
Step 2 — Enforcement
Violations are addressed through a structured enforcement mechanism.
↓
Step 3 — Consumer Protection
Customers receive grievance-redress mechanisms.
↓
Step 4 — Deposit Insurance
If a bank fails, eligible depositors receive protection within the insurance framework.
Thus:
Supervision → Enforcement → Consumer Protection → Depositor Safety
This is the broader financial-stability architecture.
47. What Changed During FY 2025-26?
| Area | Important FY 2025-26 Development |
|---|---|
| Bank liquidity | Forward-looking survival-horizon model |
| Digital banking | Service Availability & Resilience Framework under development |
| Cybersecurity | Cyber Range operationalised |
| Fraud | AI/ML and technology-enabled fraud controls |
| Data | Quarterly sDQI publication |
| UCB supervision | Risk-based KYC/AML framework strengthened |
| NBFC supervision | Risk-assessment model recalibrated |
| Enforcement | 241 penalties worth ₹26.33 crore |
| Ombudsman | RB-IOS 2026 issued |
| Internal complaints | Internal Ombudsman Directions issued |
| Cooperative banks | Central/state cooperative banks brought under Ombudsman framework |
| CMS | CMS 2.0 under development |
| Deposit insurance | Risk Based Premium Framework effective Apr 1, 2026 |
48. RBI’s 2026-27 Supervisory Priorities
The Annual Report’s forward agenda is also important.
For all supervised entities, RBI plans to:
- leverage SupTech/AI/ML;
- develop a proof-of-concept for analysing root causes of complaints;
- develop comprehensive supervisory manuals;
- assess business models of supervised entities; and
- review supervisory directions.
For cyber risk, priorities include:
- micro-data analytics;
- AI-related cyber-risk reviews;
- wider digital-service availability monitoring;
- Digital Forensic Readiness;
- improved incident reporting; and
- cybersecurity mapping.
49. What Is the Direction of RBI Supervision?
The Annual Report’s conclusion is particularly revealing.
RBI intends to focus on:
- stronger stress-testing frameworks;
- enhanced cyber resilience;
- improved risk surveillance;
- responsible and ethical innovation; and
- stronger consumer protection and grievance redressal.
The direction can therefore be summarised as:
Reactive supervision → proactive supervision
Periodic data → continuous intelligence
Manual assessment → SupTech/AI-assisted supervision
Uniform insurance pricing → risk-based premium
Complaint handling → technology-enabled customer resolution
50. High-Probability Exam Questions
Q1. How many fraud cases were reported in FY 2025-26?
10,114.
Q2. What was the amount involved?
₹48,021 crore.
Q3. Which category accounted for the largest amount of fraud in FY 2025-26?
Advances — ₹40,774 crore.
Q4. What percentage of total fraud amount was related to advances?
84.9%.
Q5. How many penalties did RBI impose during FY 2025-26?
241.
Q6. What was the total penalty amount?
₹26.33 crore.
Q7. Which entity category received the largest number of penalties?
Cooperative Banks — 172.
Q8. When was RB-IOS 2026 issued?
January 16, 2026.
Q9. When were Internal Ombudsman Directions issued?
January 14, 2026.
Q10. When were central and state cooperative banks brought under RB-IOS?
November 1, 2025.
Q11. How many Ombudsman offices operate under RB-IOS?
24.
Q12. What is the current deposit insurance limit?
₹5 lakh per depositor per bank, subject to the same-capacity/same-right principle.
Q13. How many insured banks were there as of March 31, 2026?
1,950.
Q14. How many were cooperative banks?
1,826.
Q15. How many commercial banks were insured?
124.
Q16. What percentage of deposit accounts were fully insured?
97.5%.
Q17. What percentage of assessable deposits were insured by value?
41.1%.
Q18. What was DICGC’s premium rate during FY 2025-26?
0.12% per annum.
Q19. What is the Risk Based Premium Framework?
A framework providing differential deposit-insurance premiums based on the risk profile of insured banks.
Q20. When did the RBP Framework become effective?
April 1, 2026.
Q21. What was the DICGC Deposit Insurance Fund at end-March 2026?
₹2,61,823 crore.
Q22. What is sDQI?
Supervisory Data Quality Index.
Q23. What are its four dimensions?
Accuracy, Completeness, Timeliness and Consistency.
51. Numbers You Must Memorise
Supervision
10 banks → digital service availability pilot
15 overseas branches inspected
12 supervisory college meetings
Fraud
10,114 cases
₹48,021 crore amount involved
₹40,774 crore → advances
84.9% → advances’ share of fraud amount
Enforcement
241 penalties
₹26.33 crore
342 show-cause notices
698 charges
382 charges → monetary penalty
316 charges → no enforcement action
Consumer Protection
24 Ombudsman offices
RB-IOS 2026 → January 16, 2026
Internal Ombudsman Directions → January 14, 2026
Cooperative banks under RB-IOS → November 1, 2025
DICGC
1,950 insured banks
124 commercial
1,826 cooperative
₹5 lakh insurance limit
291.4 crore fully insured accounts
97.5% accounts fully insured
₹1,04,09,023 crore insured deposits
41.1% of assessable deposits
2.37% reserve ratio
0.12% premium
₹29,947 crore premium received
₹1,988 crore claims settled
72 UCBs
₹2,61,823 crore DIF
14.4% DIF growth
RBP Framework → effective April 1, 2026
52. One-Minute Revision Sheet
SUPERVISION
Forward-looking → risk-based → technology-enabled.
LIQUIDITY STRESS
Reverse model → survival horizon/days-to-failure model.
CYBER
Cyber Range → IDRBT → simulated cyber drills.
DATA
sDQI → Accuracy + Completeness + Timeliness + Consistency.
FRAUD
10,114 cases → ₹48,021 crore
Largest value category:
Advances → ₹40,774 crore
ENFORCEMENT
241 penalties → ₹26.33 crore
Largest number:
Cooperative Banks → 172
CONSUMER
RB-IOS 2026 → Jan 16, 2026
Internal Ombudsman Directions → Jan 14, 2026
24 Ombudsman offices
DICGC
1,950 banks
₹5 lakh coverage
97.5% accounts fully insured
41.1% deposits by value
0.12% premium in FY26
RBP → Apr 1, 2026
DIF → ₹2.62 lakh crore
Key Takeaways
- RBI’s supervisory framework is becoming increasingly forward-looking and risk-based.
- Bank liquidity stress testing was upgraded to a survival-horizon/days-to-failure model.
- RBI strengthened monitoring of digital banking resilience and service availability.
- FY 2025-26 recorded 10,114 reported fraud cases involving ₹48,021 crore.
- Advances accounted for ₹40,774 crore, or 84.9% of the amount involved.
- Reported fraud amount is not equivalent to actual loss.
- RBI imposed 241 penalties amounting to ₹26.33 crore.
- Cooperative banks accounted for 172 penalties, the highest number among entity categories.
- RBI issued RB-IOS 2026 on January 16, 2026.
- Internal Ombudsman Directions were issued on January 14, 2026.
- Central and state cooperative banks entered the RBI Ombudsman framework from November 1, 2025.
- DICGC insured 1,950 banks as at March 31, 2026.
- The deposit insurance limit remains ₹5 lakh per depositor per bank.
- 97.5% of deposit accounts were fully insured, but only 41.1% of assessable deposits by value were insured.
- DICGC received ₹29,947 crore in insurance premiums during FY 2025-26.
- The Risk Based Premium Framework became effective from April 1, 2026.
- DICGC’s Deposit Insurance Fund reached ₹2,61,823 crore.
- RBI’s future supervisory strategy increasingly combines SupTech, AI/ML, cyber intelligence, data analytics, risk-based supervision and consumer protection.
The Core Exam Insight
The most important way to remember this entire chapter is:
RBI is building a financial system in which risks are identified earlier, supervised more intelligently, violations are enforced consistently, customers receive stronger grievance protection, and depositors have a formal safety net through DICGC.
That is the complete architecture of banking safety revealed by the RBI Annual Report FY 2025-26.
Part 18 complete.
