Keep your money safe: Stick to systemically important banks for safety

Be wary of co-operative banks which have historically been most vulnerable

Sanjay Kumar Singh
Bank, money, Banks

Recent collapses of banks like Silicon Valley Bank and Signature Bank in the United States, as well as European bank Credit Suisse's takeover, have left customers worldwide feeling uneasy. In India, past incidents involving banks such as Punjab & Maharashtra Cooperative (PMC), Yes Bank, Lakshmi Vilas Bank, Global Trust Bank, and others have also added to concerns.
Choosing your bank with care has hence never seemed more important. If your deposits are with a bank that gets into trouble, the Reserve Bank of India (RBI) may eventually find a stronger bank to take over the troubled entity. But you could lose access to your funds during the period of moratorium (imposed to avoid a bank run). Exercising a few precautions in bank selection can help avoid such unnecessary anxiety.
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First Published: Mar 20 2023 | 8:32 PM IST

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