Banks safe, but need vigil

The country’s banks received a vote of confidence from Prime Minister Manmohan Singh on Monday.

The country’s banks received a vote of confidence from Prime Minister Manmohan Singh on Monday.

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“Our banks are well regulated and also well capitalised,” he said at a meeting to discuss possible measures to help overcome the current global credit crisis.

However, he cautioned, that situation was abnormal and called for vigil. "The situation is being watched on a day-to-day basis and more steps will be taken if required,” Singh said.

“I think we have successfully conveyed to our people that our banking system, both in the public and the private sector, is safe, and the government stands behind it and that no one should fear for the safety of bank deposits,” he said.

The Reserve Bank and the government have taken several measures to infuse liquidity into the system and ensure adequate flow of credit, he said.