Indian banking system safe and stable, no need to panic: RBI

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The RBI on Tuesday assured the public that the Indian banking system is safe and stable and there’s no need for panic based on rumours. In a tweet, the central bank acknowledged “rumours in some locations about certain banks, including co-operative banks, resulting in anxiety to depositors”. It recently imposed limits on depositors’ withdrawals from Punjab and Maharashtra Co-operative Bank.

The RBI statement came on a day when the Nifty Bank index fell by 1.30 percent in intra-day trade amid a barrage of negative news from the sector, including a deepening crisis at the Punjab and Maharashtra Co-operative Bank.

Bank stocks lost heavily on both the Sensex and Nifty indices on Tuesday over concerns regarding stress in the financial system.

Shares of private sector lender Yes Bank plummeted over 22 percent, while RBL, IndusInd Bank, State Bank of India, IDFC First and Punjab National Bank fell up to 5 percent on the NSE.

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