Reserve Bank of India governor Shaktikanta Das today said that the Indian banking system is safe and sound. “Your money is safe,” RBI governor assured the depositors.
“In the recent past, COVID-19 related volatility in thestock market has impacted share prices of banks as well, resulting in somepanic withdrawal of deposits from a few private sector banks. It would befallacious to link share prices to safety of deposits. As I have mentioned inmy earlier interaction with the media, depositors of commercial banks includingprivate sector banks need not worry on the safety of their funds. I would,therefore, urge members of public as well as the public authorities, who havedeposits in private sector banks, not to resort to any panic withdrawal oftheir funds,” he said.”In spite of the very challenging environment, Iremain optimistic. It is worthwhile bearing in mind that the macroeconomicfundamentals of the Indian economy are sound and, in fact, stronger than whatthey were in the aftermath of the global financial crisis – the fiscal deficitand the current account deficit are now much lower; inflation conditions arerelatively benign; and financial volatility measured by change in stock pricesfrom recent peaks and average daily change in the exchange rate of the rupee isdistinctly lower. COVID-19 is upon us; but this too shall pass,” RBI governorsaid.