The world is moving towards a big recession, and the recent banking crisis in India testifies it. In a span of a couple of years, several banks in India have either lost a significant amount of money or have shut down completely. The country is now the highest NPA ratio in the world, and the situation seems to be moving bad to worse.
In another shocking development on Thursday evening, the Reserve Bank of India, the country’s banking regulatory authority, imposed a moratorium on withdrawals from Yes Bank, one of the top private sector banks in India. Subsequently, long ques of account holders were seen outside the 1000+ Yes Bank branches and over 1800 ATMs.
Last year, the PMC Bank faced similar measures from the RBI, and unfortunately, the bank is currently under liquidation. Yes Bank seems to be on a similar path, though the government promises that account holders will not lose their money.
In short, the situation of banking in India is gross and is deteriorating by the day. On Friday, SENSEX saw a drop of more than 893 points, as the markets witnessed lost 2.32%. Yes Bank share prices were down by more than 54%, while its market cap crashed by more than 85%, sending shockwaves throughout the Indian financial sector.
Sadly, the common investors and depositors suffer the most every time, and there doesn’t seem to be any remorse for them. However, this state of utter despair can be the opening for the crypto industry, or at least people might start thinking about investing in digital assets. Here’s why: Read More...