Depositors money is safe in any bank: Reserve Bank of India
Mumbai/IBNS: The Reserve Bank of India on Sunday assured that people should not panic as there is no such concern about safety of their deposits in any bank.
"Concern has been raised in certain sections of media about safety of deposits of certain banks. This concern is based on analysis which is flawed. Solvency of banks is internationally based on Capital to Risk Weighted Assets (CRAR) and not on market cap," the bank tweeted.
Concern has been raised in certain sections of media about safety of deposits of certain banks. This concern is based on analysis which is flawed. Solvency of banks is internationally based on Capital to Risk Weighted Assets (CRAR) and not on market cap. (1/2)
— ReserveBankOfIndia (@RBI) March 8, 2020
"RBI closely monitors all the banks and hereby assures all depositors that there is no such concern of safety of their deposits in any bank," it said.
RBI closely monitors all the banks and hereby assures all depositors that there is no such concern of safety of their deposits in any bank. (2/2)
— ReserveBankOfIndia (@RBI) March 8, 2020
The RBI made the remark at a time when India is witnessing the development around the Yes Bank.
A local court here on Sunday remanded Yes Bank founder Rana Kapoor to the Enforcement Directorate (ED) custody till March 11 in a money laundering case.
According to sources, the probe agency put forward a report in the court which pointed out that Dewan Housing Finance Corporation Ltd (DHFL) inflated value of property worth Rs 40 crore to Rs 735 crore for a loan from Yes Bank which was approved by the bank.
The ED told the court that the role of some companies run by Kapoor's family members needs to be established, and they need to confront all these people with the accused.
A battery of lawyers representing Kapoor said their client has been selectively targeted by the ED and he is cooperating with the probe agency.
Kapoor was arrested after charges of alleged financial irregularities and mismanagement in the operations of the private bank surfaced.
The RBI and Union government have initiated action to control affairs of the crisis-hit Bank.
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