Last year, a major scandal regarding financial irregularities involving Rs 13,800 crore by way of issue of fake bank guarantees by the managers of a large public sector bank (PSB) was reported. This affected the reputation of all PSBs in India. The non-performing assets (NPAs) of PSBs together rose to Rs 8.06 lakh crore as on March 2019 from Rs 1.30 lakh crore in March 2014. Banks such as IDBI Bank, Lakshmi Vilas Bank, and in September 2019, Punjab & Maharashtra Co-operative Bank reported frauds in lending big amount to industrialists. All these have shattered the confidence of the public in the banking system of our country.
Many people must be worried about their investments or savings not only in banks but also in life insurance companies.
