Indian banks start to fail

[prashantazazel]

Insured amount is one lakh (100,000)per account per branch.
People go to these shady/weak banks for the higher interest rates. A bad idea, in general.

Never keep all your money in one place.

 

[Beast]

Indian finance just lost its credibility from today's onwards. A Tsunami is coming.

 

[BringHarmony]

People go to these shady/weak banks for the higher interest rates. A bad idea, in general.

I do the other way round :grin: Go to shady Credit Unions to take loans for flipping real estate.

 

[prashantazazel]

As in 1 million Indian currency?

0.1 mil.
There was a proposal by Jaitley to increase it by 10 times. Didn't materialise, till now.


These smaller banks are abused by local strongmen and politicians.

 

[Thorough Pro]

Default also means not paying back the money to its original owner.

Weird title. Banks do not exactly become defaulters. Banks can have liquidity crisis or loss. This is because default means not paying a loan. Banks don’t exactly take loans.

Source of this news?

@Nilgiri do banks in India take loans to operate?

 

[Nilgiri]

As in 1 million Indian currency?

How much money typically people in India have in their checking accounts or CDs?

Its 100,000 Rs. Around 1500 USD value. Next to nothing in global norms (remember PPP also means can multiply by about 3), but its low tier adequate in local terms for current majority of ppl needs.

 

[prashantazazel]

Indian finance just lost its credibility from today's onwards. A Tsunami is coming.

Nope. Most of these are tiny banks, and will get merged and likely nationalised.
The government can always infuse cash.

 

[BringHarmony]

Default also means not paying back the money to its original owner.

It simply means not meeting your debt obligation. Checking accounts are not exactly debt obligations.

Its 100,000 Rs. Around 1500 USD value. Next to nothing in global norms (remember PPP also means can multiply by about 3), but its low tier adequate in local terms for current majority of ppl needs.

1500 is very low but in line with GDP per capita and wealth per capita of India. So it might just be enough to cover poor people.

 

[prashantazazel]

I do the other way round :grin: Go to shady Credit Unions to take loans for flipping real estate.

Yeah. Those tend to have low rates. And apparently are friendlier too.

 

[BringHarmony]

Nope. Most of these are tiny banks, and will get merged and likely nationalised.
The government can always infuse cash.

So I was right that these are not high-street banks in India.

Thought that. A liquidity crisis in high-street bank would have caused a massive uproar everywhere.

Yeah. Those tend to have low rates. And apparently are friendlier too.

Naah, they are just willing to give money even with bad credit score, here in canada at least. Not to mention, they don't do the credit stress test. So you can borrow quickly and make some quick bucks in a volatile real estate market that we have.

 

[Zapper]

Nope. Most of these are tiny banks, and will get merged and likely nationalised.
The government can always infuse cash.

You're aware that you responded to a troll post right!!

 

[Safriz]

Almost 16 banks turn as defaulter in India today,

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Feel sorry for these poor people.
The political show off and fake economy of Nerender Modi has taken its toll

Hope it worsens

 

[Type59]

What do you expect from a Indian leader surrounded by yes men. Clouds reflect radar, Note ban.etc.

 

[Fireurimagination]

16 Banks it's one Bank 'PMC' (which is also relatively small) where irregulaties have been unearthed and thus RBI has placed restrictions on their operations.

 

[CIA Mole]

"At least 21,049 dummy accounts were used by the Punjab and Maharashtra Co-operative Bank to hide accumulated non-performing assets of realty firm Housing Development and Infrastructure Limited (HDIL), revealed suspended PMC bank managing director Joy Thomas's letter.

His confession letter to RBI also revealed that the bank's exposure to bankrupt HDIL has been pegged at Rs 6,500 crore, which is 73 per cent of the bank's total assets."