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| Bank deposits safe: Montek | | | EARLY TIMES REPORT
NEW DELHI, Oct 8: Money of depositors in Indian as well as branches of foreign banks in the country is completely safe, Planning Commission Deputy Chairman Montek Singh Ahluwalia said while dismissing fears of collapse of any bank in the country.
"Indian banks are heavily capitalised. Our assessment is that there is no danger of a financial collapse of the Indian banks, of the kind that you see in the rest of the world", he said in an interview to Karan Thapar for the Devil's Advocate program to be telecast on CNN-IBN.
As regards the money of depositors' in branches of foreign banks, he said they (foreign banks) are more regulated in India. "My understanding is that the foreign banks are not exposed to toxic acids. The foreign banks are subjected to the same regulation as Indian banks."
Ahluwalia said the Indian banking system is supervised by the RBI and there is no reason for worry as far as deposits are concerned.
However, he added, the equity value of theses banks will vary, depending on the market conditions.
Referring to the impact of the global financial meltdown, he said studies done by Finance Ministry and RBI indicate that "Indian intuitions are not burdened with any of the toxic acid that has created problem in the world financial system . Indian financial system is much more sound than people think."
Even in case of foreign banks which have collapsed, Ahluwalia said, equity holders have lost out but not the depositors. |
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