Banking Crisis: With the sinking of Silicon Valley Bank, the Global Banking Crisis has started in America and European countries. In such a situation, continuous speculations are being made about its effect in India. Now Economic Affairs Secretary Ajay Seth has given an important statement on this matter. He said that the global economy is going through a very difficult phase at the moment, but it will not affect India. Indian economy and financial sector is completely safe. The country’s financial sector is strong and properly regulated.
India needs to be cautious
However, DEA Secretary Ajay Seth also said that in this global situation, if India sees an early warning, then we need to be alert immediately. Seth said that if there are many such indicators, then they give warnings in the early stages. If we understand these signs well, then by improving them, we can avoid the big trouble ahead.
Financial crisis will not affect India
Ajay Seth has said all these things after the meeting of the Financial Stability and Development Council. Significantly, after presenting the budget on February 2023, Finance Minister Nirmala Sitharaman has chaired the first meeting of the Financial Stability and Development Council. When asked whether the banking crisis in America and Europe was discussed in this meeting, Ajay Seth said that this issue was not discussed clearly, but it was definitely said that all necessary steps should be taken to keep the country’s financial system safe. Regulatory bodies have a shared responsibility.
It is worth noting that after the sinking of Silicon Valley Bank and Signature Bank of America, the news of the sinking of Credit Suisse Bank of Switzerland had also come. Since then, there is an atmosphere of uncertainty in the world banking system.