According to the Reserve Bank of India, which bank became the third lender to be classified as a Domestic Systemically Important Bank (D-SIB)?

Introduction / Context:
The Reserve Bank of India (RBI) designates certain large banks as Domestic Systemically Important Banks, often abbreviated as D-SIBs. These institutions are considered so important to the financial system that their distress or failure could have significant negative effects on the wider economy. General knowledge and banking awareness questions often check whether candidates know which banks are on this list and in what order they were added. This question asks specifically which bank became the third one to receive the D-SIB classification from the RBI.

Given Data / Assumptions:
- The context is the RBI's list of Domestic Systemically Important Banks (D-SIBs).
- State Bank of India (SBI) and ICICI Bank were the first two banks on the D-SIB list.
- The question focuses on the third bank added to this category.
- The options are ICICI Bank, SBI, HDFC Bank and Axis Bank.

Concept / Approach:
D-SIBs are sometimes referred to as too big to fail banks because their smooth functioning is critical to the stability of the domestic financial system. The RBI introduced this framework in line with global recommendations. Initially, the RBI identified SBI and ICICI Bank as D-SIBs. Later, HDFC Bank was added as the third bank to the list, reflecting its large size, extensive customer base and significant role in the Indian banking sector. Therefore, HDFC Bank is correctly recognised as the third bank to receive D-SIB status.

Step-by-Step Solution:
Step 1: Recall that State Bank of India and ICICI Bank were the first two banks categorised as D-SIBs in India.
Step 2: Remember that HDFC Bank is also a very large private sector bank with a wide impact on the financial system.
Step 3: Note that RBI later added HDFC Bank to the list, making it the third Domestic Systemically Important Bank.
Step 4: Evaluate the options and see that ICICI Bank and SBI were already on the list, so they cannot be the third.
Step 5: Conclude that HDFC Bank is the correct answer, while Axis Bank has not been officially designated as a D-SIB in the same way.

Verification / Alternative check:
A practical way to verify this memory is to recall commonly used banking awareness summaries. Many exam preparation books and articles explicitly state that after SBI and ICICI Bank, HDFC Bank became the third bank to be tagged as a Domestic Systemically Important Bank by the RBI. This sequence is often highlighted in tabular form under the heading of D-SIBs, so students who have read those tables will quickly recognise HDFC Bank as the correct option.

Why Other Options Are Wrong:
- ICICI Bank: It was one of the first two banks designated as a D-SIB, so it cannot be the third bank added to the list.
- State Bank of India (SBI): SBI is also in the original group of D-SIBs and is often mentioned first due to its size, so it is not the third addition.
- Axis Bank: A major private sector bank, but it has not been officially identified as one of the first three D-SIBs by the RBI in the way HDFC Bank has been.

Common Pitfalls:
Because SBI and ICICI Bank are so frequently mentioned along with the D-SIB concept, some candidates mistakenly pick one of them when asked about the third bank. Another confusion arises from mixing up large private sector banks like Axis Bank and HDFC Bank. To avoid errors, learners should memorise the simple sequence: first SBI and ICICI Bank, then HDFC Bank as the third D-SIB. Keeping a small note of key financial sector lists, such as D-SIBs, payment banks and small finance banks, can help in quick revision before exams.

Final Answer:
The third bank classified by the RBI as a Domestic Systemically Important Bank is HDFC Bank.