Hi Sreekanth,
My Query is I am planning Fixed Deposit in Standard Chartered Bank for 2 Lakh rupees for 5 Years.I just wanted to know how safe is to deposit in international bank like this and what happens in case of bank bankruptcy and default scenario? As my friends are suggesting to go for any Nationalized Bank instead.
Kindly Suggest?
Regards,
Mohammed
1 Answers
Hi Mohammed,
I believe that our Indian banking system is well regulated one. Even in the past when few of the banks went bankrupt, such banks businesses were taken over by other interested banks.
Any bank (national or pvt) have to maintain certain liquidity levels in line with RBI regulations to accept Deposits and to Lend money.
But do note that the FDs in a bank are guaranteed to the tune of Rs 1 Lakh only.
Kindly read : Bank Deposits - Are you aware of this interesting fact?
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