The IndusInd Effect: A Wake-Up Call for Bank Depositors

Fears of bank deposit safety have been raised again after IndusInd Bank's announcement of accounting irregularities in its derivatives book. While the bank itself is financially strong, the incident has created jitters among investors and depositors alike. Traditionally, the RBI has successfully intervened in bank crises, as in the cases of YES Bank and PMC Bank, to save depositors. Deposits of up to ₹5 lakh are insured by the DICGC, which adds an extra layer of protection. But the incident points towards the importance of caution and strong internal controls in banks.

 

Source: Financial Express, Times of India, CNBC-TV18