Indian banking system safe and stable: RBI

The Reserve Bank of India (RBI) has assured the general public that the Indian banking system is safe and stable and there is no need for panic based on rumours.The central bank also issued a statement saying that the Indian banking system was ‘safe and stable’.

The RBI issued the statement on Tuesday when the Nifty Bank index tanked by 1.30 per cent 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 cooperative 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 basis of such rumours," the Reserve Bank said in a tweet.