Which bank is safest in India? Are private banks safe or public banks?
- Asked By
- Updated On:22-Apr-2024
- Replies:3
Short Answer
You can choose any bank in India to open an account in, be it a private-sector bank or a public-sector bank. By the market share SBI, HDFC, and ICICI Bank are the three top banks that can be considered when looking at the largest banks in India.
Detailed Answer
What type of bank accounts are available in India?
A bank account is a kind of safe-house for your money, using which you can store, transact and transfer money. A bank account helps you to undertake any kind of financial transaction online as well as offline. You get many benefits with a bank account such as a cash withdrawal facility from an ATM, online transaction benefit, and additional interest on your money.
There are many bank account that you can open in India. The most common type of bank account is the Savings bank account. The next common account is the Current account which is broadly used by companies and businessmen.
There are both private as well as public sector banks that provide banking facilities to the common public. You can go ahead and open an account with any of the banks in India.
Which is the safest bank in India?
First of all, all the commercial and public banks can be considered safe as they are regulated and monitored by the Central Bank or the RBI (Reserve Bank of India). Public-sector banks can be considered a bit safer than private banks as a majority stake in the banks is owned by the Indian Government.
On the other hand, private banks or commercial banks are equally safe as they are all insured by the DICGC (Deposit Insurance and Credit Guarantee Corporation). Under this, up to 5 lakh rupees of your money, deposited in the bank insured by the DICGC. If the bank undergoes liquidation or if the banking license is cancelled, you will get up to Rs 5,00,000 under the insurance.
The Biggest Banks in India
Although there are many banks in India, some of the biggest banks in the terms of total customers, deposits, etc. are HDFC Bank, SBI, ICICI Bank.
These three banks can be considered the safest banks in India as they are the largest among the competitions. SBI or State Bank of India is the largest government bank in India with an overall market share of 23.9% in terms of deposits.
On the other hand, the next contender is HDFC Bank with an overall market share of 8.5%, followed by ICICI Bank at 5.7%.
This metric can be considered when deciding on a bank to open an account with. There are other parameters that you have to look at in order to choose a bank account. One of the things to look at is the interest rate as well as the lending rate. These two things are important to consider when considering a bank account.
Best Bank in India
For a savings account, you can consider any bank public or private which provides good interest rates. One might have safety concerns like Yes Bank but incidents like that don’t happen suddenly. Therefore, you will have sufficient time to pull out your money and transfer it to a different bank account at the signs of distress. Apart from that you can remain assured your money up to Rs 5,00,000 is insured which will be returned back to you by DICGC in case the bank fails.
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Discussion (2)
Any of the larger banks are safe. Your savings are already insured by DICGC for upto 5 lakhs. Still ICICI, SBI and HDFC are the top banks when it comes to safety.
There are mainly 5 types of bank accounts in India. These include Savings account, Current account ,Fixed deposit account, Recurring deposit account and NRI accounts.
Public Provident Fund Scheme is a saving scheme that comes with tax benefits. Ministry of Finance introduced this scheme in the year 1968. The main objective of PPF is to encourage general people to mobilize their small savings. The interest offered on these schemes are not taxable. Precisely, PPF is an investment with non-taxable returns.
cKYC is known as Central KYC, is a centralized registry for maintaining the KYC records of an individual digitally. The cKYC registry was launched July 2016, with an aim to reduce the level of documentation and KYC verification process involved in a financial transaction with different financial institutions including Banks, Insurance, NBFCs and Mutual Funds.
Currently, an eligible person can have as many bank accounts as he or she wants. There could be multiple accounts with the same bank or separate accounts with different banks.
Navigating the huge selection of investing possibilities can be a difficult chore for middle-class people.There are a lot of options, ranging from mutual funds and fixed deposits to the National Pension System. This will give middle-class Indians a thorough insight to the finest investing strategies.
HDFC bank is undoubtedly a safe bank in India. The bank is India's largest private bank in terms of market capitalization and has also been ranked India's No. 1 bank in Forbes' World's Best Bank Report.
Sovereign Gold bonds is one of the most promising investments that can be made by people. The certificate of SCB is accessible though all the official agencies or agents and directly it is accessible from RBI via emails.
An NRI requires a number of documents to open a Demat account in India. Continue reading to find out the list of documents.
A fixed deposit is one such financial instrument which will help you deposit a sum with a bank for a predetermined period of time and the bank pays an interest on that sum. In essence, it’s a way of lending money to a bank, the opposite of taking a loan. These are sometimes even referred to as bonds or term deposits.
Looking into the interest rates, minimum savings required in the account, easy online facilities are few of the many options you should consider while choosing a savings account with any respective bank.
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I think the public sector banks like SBI are safest in India