Come April 1, 2026, financially sound banks will see a sharp 33% decline in their deposit insurance premium, bringing it down to 8 paise per Rs 100 of deposits, compared with the current premium of 12 paise per Rs 100. Going ahead, banks in India will shift from the existing flat-rate system to a risk-based premium model. The Deposit Insurance and Credit Guarantee Corporation (DICGC) is planning a differentiated premium structure that rewards financially strong banks with lower insurance costs. Banks will be classified into four categories—A, B, C, and D—based on their risk profile and supervisory ratings. Category A banks, which demonstrate strong risk management and robust financial health, will see premiums reduced to 8 paise per Rs 100 of deposits, while weaker Category D banks may continue to pay up to the existing ceiling of 12 paise. Category B and C banks will pay 10 paise and 11 paise, respectively.