BANK'RUSTS'
Hello, Everyone Hope All of you are doing well. I have almost completed finishing Habit No.2 for "7 Habits of Highly Healthy Environment. But before posting the same I would like to take a break from the topic and discuss the other part of my blog which is equally important- Financial Environment.
We the people have become very insensitive. We hardly feel for anything be it for environment or fellow human being and so Environment is out of the question! We dont understand anything unless we face similar situation. But why have we become so?
In my country Money in Banks are considered more important than women! Did you get my point? The safest place to park your money is Banks , obviously if its legal. Its considered safe as people of the country have a notion that the same is backed by the government. But is it so? A middle class person works his entire life and saves his money in bank. Bossiness people take loans vide Banks. But have you people thought about the following questions?
What will happen if all the Cash from the Bank is Stolen?What will happen if Banks themselves do not have adequate Money?
What will happen if the Bank goes Bankrupt?
If I would have asked the last question just 3 years back, people would call me crazy and for the former 2 questions "Sarkar hai na". Actually all the 3 questions is one but just presentation is different. Isnt it? Read the question once more!
Banks receive money from the citizens and the amount received is advanced as loans to the borrower (that too against a collateral) on which banks earn interest. This is the simple business banks do. In the latest happening in my country A bank has indeed become bankrupt. So what now? What will the bank do now? How will it return the money to the depositers? Will they return or not? Will people be able to withdraw their money or not? If yes how much? Yes people Then The Central Bank came to the people's rescue saying that deposit limit is 1000 for 6 months! The Limits were further revised and today it stands at 40k for 6 months. Suppose Mr Serious has an account in that bank and has 10 lakhs in it and suddenly he sees that one of your family gets diagnosed with some diseases the treatment of which will require half a million. So what do will he do now? He somehow borrows money from his friends and relatives and says that he would return the money as soon as the situation in the Bank improves. But the very next day he came to know about DICGC Clause which states that in case of Bankruptcy , The Bank's Liability is limited to 1 lakh.? So what Will he do now? Can you imagine his situation as he gets this news when he is in hospital? Can the insensitive decision makers understand how important money is for the people? You have money but cant use it? Why? Because that's your fault? People are dying to get their money out. But who cares? A person had 90 lakh in the Account with that Bank. His son used to be ill frequently. Can we imagine his situation or Can anyone? Another person needed money for his daughter's wedding. What about him?
Do we realize the gravity of the situation? Do the people running the country realize? Some people ask what's the solution. Solution is - Change the DICGC law. The DICGC insures depositers amount upto 1 lakh. The question is why cant this limit be increased? Has it not been done in the past? Let me take you through. The Limit was 5000 in 1968 and 1,00,000 in 1993( with multiple upgrades in between )and since that the limit has not changed? Is the Value of 1,00,000 in 1993 and 2019 the same? Why has the limit been not increased in 26 years? Who is at fault here? Obvioulsy "We"We should have told them earlier!! Isnt it? The Bank which went Bankrupt had an NPA of 4% last year. Everything seemed normal. But all of a sudden 80% of its Loan became NPA. Like who audited these banks? Do NPAs come out all of a sudden out of no where? NPAs are not a new issue now most of the banks are under NPA stress but what if situation like these sprout? What should the citizens do?
And why are we talking about this DICGC law now? Didnt we know it? I guess many of us didn't know it.? Those thinking we should know it... Do you know and follow each law of the country? I would be very glad if the answer is affirmative! Knowledge is gained by sharing with people not by hoarding in brain!!
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