Bank Crisis Hits India, Many Accounts Wiped Out, People Left With Nothing

[1Referee]

I feel so sad about what happen to them the reason why I really don't trust bank because of that. We thought that our money is safe but look at what happens? All their money is gone so I would prefer to just invest in bitcoin rather than saving money on the bank that you are not sure if it's really secure.

Despite how little trust there is left in the banking system, banks remain the best option to store your fiat wealth.

I personally haven't ever had a problem with my bank account, neither did I ever fear that anything would happen to my money. In most western countries the oversight on banks (especially publicly traded banks) is so tight that on a retail client level there isn't much to fear about. It gives people the peace of mind they're looking for.

As much as I would love to say that people should dump all their money in Bitcoin, it doesn't work like that. There is volatility risk, risk of security negligence that could lead to the loss of funds, etc. Diversification (fiat, Bitcoin, Gold, etc) is smart. Also make sure to use not just one bank, but several to reduce the risks even further. I personally use 3 banks where I have a third of my savings with each of them.

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[ene1980]

Despite how little trust there is left in the banking system, banks remain the best option to store your fiat wealth.

For a common citizen banking is the safest option when storing your wealth and the risk comes when you choose the banks you are planning to store your wealth, i will not select any private banks to deposit my money but would rather look for banks controlled by the central bank and i will only trust Bankitalia.

I personally haven't ever had a problem with my bank account, neither did I ever fear that anything would happen to my money. In most western countries the oversight on banks (especially publicly traded banks) is so tight that on a retail client level there isn't much to fear about. It gives people the peace of mind they're looking for.

These banking issues happened with private banks in the US during recession and this case is in India, these things happen in third world countries even if government regulated and controlled banks but not in my part of the world.

[SummerBliss]

So from this we can conculde that nowadays banks are aslo not safe to keep your money as scams are happening in every feild of work.So who are to we blame in this?Rich took loans from banks and misrepresent their financial statememts to fool banks and then this whole thing turns out te be scam.And poor people fails to improve their financial conditions under these cases.So that is why btc and blockchain technology needs to be adopted to create a safe and secure environmemt to transact online transactions with transparency.

[beerlover]

Economy has been in shambles all around the world, India is just another leg of this, soon it will be all over the world and all the big major nations will face it as well, what do you think those huge nations like UK and USA do to make that much money? They scam the low money requirements in lower nations and now those nations are in economical trouble and require more money to keep surviving the prices of manufacturing will go up and that is when the people in those big nations will start to feel it as well.

India is literally the biggest source of cheap labor for talented people, they are not like Chinese where they make almost free shirts, they are IT people who understand from many aspects, they will want more money soon and then Silicon Valley will have to face a harsh reality that no matter how rich they are, they can't continue skimping on employee costs.

[target]

So from this we can conculde that nowadays banks are aslo not safe to keep your money as scams are happening in every feild of work.So who are to we blame in this?Rich took loans from banks and misrepresent their financial statememts to fool banks and then this whole thing turns out te be scam.And poor people fails to improve their financial conditions under these cases.So that is why btc and blockchain technology needs to be adopted to create a safe and secure environmemt to transact online transactions with transparency.

Even from the start though but everyone has no option but to put their money in banks as its more dangerous to keep bringing a sum of cash anywhere you go. Nothing will even make the government of India change their stance about cryptocurrency, this is just one bank anyway. This country is not left behind when it comes to technology though, they are better than their neighbors here in Asia.

[desticy]

In India, strange things are happening that can adversely affect the market.
I think it is connected with the following events. In India, strange things are happening that can adversely affect the market.
I think this is primarily due to the onset of the financial crisis. Obviously, Indian banks worked on this principle like everyone else.
It seems that the crisis will begin with India. A crisis in the banking systems is inevitable.

[wxa7115]

It may be rather ungrateful to evaluate the state of the Indian banking system on just one case, but it is strange that this bank managed to do things like this and was able to create 21 000 fictitious accounts to hide bad business. This shows us that actually control of the central bank failed in his work, or at least it was late to prevent financial malversations.

When asked why people still keep money in banks, most say that it is still the safest way (for them). And given the attitude of the Indian government towards cryptocurrency, I think it's hard to expect people to change their minds and turn to something else, especially towards Bitcoin, which is still too complicated for most.

In my opinion, any investment is a risk, but I think that keeping money in banks at times like this is an even bigger risk. In some countries (EU) state guarantees for the funds up to a certain amount, so even if banks fail the client is insured against loss.

But what happens when this becomes common place? Who is going to guarantee the government is going to pay? And even if they do they most likely will print the money they need, this in return will cause inflation and will not only weaken the purchasing power of the money of those saving in those banks but they will weaken the purchasing power of everyone.

People should be looking for a way to protect their savings, I know it is difficult since we will never know when the crisis will appear but trying to do it when the crisis is already here is a mistake, I have chosen bitcoin but I have no problems with those that choose gold in order to achieve that very same goal.

[bryant.coleman]

Contrary to what the OP had posted, it looks like the depositors will be reimbursed for most of their losses. In India, they have a mechanism called the Deposit Insurance and Credit Guarantee Corporation (DICGC), which acts as an insurance policy for every Indian national having a bank account. This scheme covers each and every bank account (savings, current.etc) in India.

However, there is a catch. As with any insurance policy, there is an exposure limit. And it is capped at ₹100,000. Now this may sound very minuscule for people in developed nations, but for the Indians, it is a big amount. And some 80% to 90% of all the account holders of the PMC Bank have deposits below this threshold. Multiple accounts by the same person will be considered as a single account.

[jaocoincrypto18]

This shows that it is also unwise to keep all of our money in the bank as its just proven not safe too that even it just a one bank involved but i believe that all banks in India will be affected. Hopefully their bank insurance policy can be able to return the money of their clients so that the confident of the people to the banks will stay.

[Murat]

Don't take it very seriously, It's happening around the world, the conventional banking system is getting in difficulties because of engaging in the online-based system, in recent time, A lot of occurrences we have seen and many people lost their valuable saving and investment though it must provide by the bank. Not only in India, but also in the developed countries, we are the witness of many system failures, not only that but also a country's central bank faced a huge security crisis by hacking their system, also we know a lot of banks are facing a liquidity problem in recent time, So people start getting worried on the current context and its high time cryptocurrency platform should be flourished out by introducing some good project.

[Sithara007]

Also, maybe you could provide us links to the latest updates for reference.

You can check these:

https://www.moneycontrol.com/news/business/companies/pmc-bank-crisis-hdil-enforcement-directorate-sarang-rakesh-wadhavan-asset-seizure-4526681.html

The Enforcement Directorate (ED) today provisionally attached properties worth Rs 3,000 crore belonging to Rakesh and Sarang Wadhavan, promoters of bankrupt real estate firm HDIL.

The plots are located in prime areas such as Vasai, Virar and Palghar and totals 2100 acres. A conservative estimate is that the net worth of this real estate stands at ₹30 billion (around $400 million). Earlier, property and assets worth ₹600 million were seized by the ED. Check these:

The ED's action, which is based on the investigation of the Mumbai Police's Economic Offences Wing (EoW), comes soon after it also initiated provisional attachment of the Wadhawans’ 22-room beachside Alibaug bungalow that stands on a 2.5-acre property, two private jets -- a Falcon 200 and a Bombardier Challenger -- and jewellery worth Rs 60 crore.

And here is the statement from ED saying that the seized assets account for over 80% of the amount owed:

The agency had also frozen five bank accounts of Waryam Singh, the former chairperson of the PMC Bank, who was named in the first information reports (FIRs) of the ED and EoW. So far, the value of the assets attached total up to Rs 3,500 crore, or more than 80 percent of the money it owes PMC Bank, even as, a source said, the ED is confident of exceeding the total amount owed.

Actually rather than complaining about the government, we should be praising them. If this had happened during the UPA rule, then the criminals would have escaped to UK or any other tax heaven with all their wealth.