Mumbai: The Reserve Bank of India on Tuesday assured the general public that the banking system is safe and stable and there is no need for panic based on rumours. The RBI’s statement came on a day when the Nifty Bank index tanked 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 (PMC).
There are rumours in some locations about certain banks including co-operative banks, resulting in anxiety among the depositors. RBI would like to assure the general public that Indian banking system is safe and stable and there is no need to panic on the bais of such rumours, the RBI said in a tweet.
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, Induslnd Bank, SBI, IDFC First and PNB fell up to 5 percent on the NSE.