Indian banking system is safe & stable; no need to panic, RBI says.

Benchmark indices reported huge selling in Tuesday's (October 1) trading session on the back of selling seen in the banking stocks, followed by IT, infra, metal and pharma stocks.

In addition to the banking stocks' fall, there was an internet banking disruption reported in some of cooperative and private sector banking name, however, it has been restored on Tuesday.

Customers of these banking complained about failure of online transactions despite multiple attempts.

However, Reserve Bank of India (RBI) tweeted that there are rumours in some locations about certain banks including cooperative banks, resulting in anxiety among the depositors.

There are rumours in some locations about certain banks including cooperative banks, resulting in anxiety among the depositors. RBI would like to assure the general public that Indian banking system is safe and stable and there is no need to panic on the basis of such rumours.

RBI would like to assure the general public that the Indian banking system is safe and stable and there is no need to panic on the basis of such rumours: the tweet said.

These disruptions added the panic among customers on the back of recent suspension of Punjab and Maharashtra Cooperative Bank's operations by the RBI.