Assuring depositors that their money was safe in banks, Reserve Bank of India Governor D Subbarao today said the Central bank was geared to inject more liquidity into the country’s financial system and that there was no cause for anxiety.
He said the banks were sound, well-capitalised and well-regulated.
"...Indian banks do not have any direct exposure to sub-prime mortgages. The banking sector, through its overseas branches, has some exposure to distressed financial instruments and troubled financial institutions.
But this exposure is part of the normal course of their business and is quite small relative to the size of their overall business," he said.
