RBI: Money protected in all banks, no have to panic

by Jeremy Spirogis
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New Delhi. The Reserve Bank of India on Sunday, whereas addressing the fears of financial institution clients, mentioned that their cash is protected. In reality, rumors of some extra banks are being unfold after the Yes Bank case surfaced. Not solely this, some media stories claimed the poor situation of Indian banks on the idea of market capitalization ratio towards deposits. After this, the RBI made it clear that the situation of a financial institution will not be recognized from the market capitalization however from the capital adequacy ratio. The RBI has rejected the estimates being made incorrect.

RBI removes worries by tweeting

RBI tweeted and mentioned that some media stories have raised considerations in regards to the safety of deposits in some banks. <! –

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                 This concern relies on evaluation that has a fault. The RBI acknowledged that banks' solvency relies on capital to threat weighted property (capital adequacy ratio) internationally, not market capital. The RBI retains an in depth watch on all banks and assures all depositors that there isn’t any concern in regards to the safety of their cash deposited in any financial institution.

RBI's plan for Yes Bank

As far as Yes Bank is anxious, SBI should buy as much as 49% stake in Yes Bank. SBI can be taking a look at proposals from traders who’ve proven curiosity in shopping for a stake in Yes Bank. At the identical time, the scheme launched for Yes Bank by RBI contains rising its approved capital from Rs 800 crore to Rs 5,000 crore. RBI has determined to not merge Yes Bank with SBI as it will put strain on SBI's steadiness sheet.

– Money secured in Yes Bank, SBI to speculate Rs 2450 crore

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