The RBI announced a new deposit insurance premium framework replacing India’s long-running flat-rate approach (currently 12 paise per 100 rupees of assessable deposits) with risk-linked pricing. Banks will be scored using financial and supervisory indicators including capital strength, asset quality, earnings, liquidity, and the potential loss a bank failure could impose on the deposit insurance fund. Two assessment models apply: a Tier 1 model for scheduled commercial banks (excluding regional rural banks) and a Tier 2 model for regional rural banks and cooperative banks. Premium adjustments are capped, with risk-based incentives limited to 33.33% over the card rate, and a separate “vintage” incentive of up to 25% may apply based on longer contribution history without major claim payouts.