IndusInd crisis an episode and not failure, banking system is secure, says RBI governor

An investigation is underway and based on its findings, appropriate action will be taken and those responsible identified, RBI Deputy Guv Swaminathan Janakiraman has said

Reserve Bank of India governor Sanjay Malhotra has said India’s banking system remains “safe and secure” and described as “episodes” and not “failures” the IndusInd Bank accounting lapses and restrictions on New India Cooperative Bank.
Malhotra was responding to a question if there were larger systemic concerns around the accounting lapses at the private lender and the failure of the Mumbai-based New India Cooperative Bank.
With 10,000 non-banking financial companies (NBFCs) and around 1,500 cooperative banks, occasional “episodes” are inevitable, the governor said at the customary post-policy press meet on April 9.

“These are not even failures, they’re episodes. These things will happen,” he added.

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