Are Indians losing trust in banks?

Are Indians losing trust in banks?

Aakriti ThaparBBC News

The past 15 months have made the dire financial situation of Indian banks more apparent, with experts asking questions as to why three major banks have collapsed under the strain of worsening debt.

The Reserve Bank of India authorised a debt-repaying suspension for Lakshmi Vilas Bank last month due to the bank’s poor financial health. The bank is the third to meet this fate in just 15 months; in 2019 Punjab and Maharashtra Co-operative Bank went under and in March this year restrictions were imposed on Yes Bank after the bank failed to repay its mountain of debt.

Fed by the pandemic, these debt piles are growing at an alarming rate and, in the absence of preemptive action, are expected to double in size. The BBC’s Aakriti Thapar reports on this collapse of Indian banking and how it is affecting the savings of account-holders.

Read the full BBC News article here.

Leave a comment

Your email address will not be published. Required fields are marked *