Why people still prefer Government banks over privet sector banks?

I mean….privet sector banks like ICICI or HFDC etc in India…are top notch service provider compared to all those govt banks put together…but still general people still go for govt banks mostly unless otherwise there is special reason to go for privet sector banks.

Does ones money secure in privet sector banks…I mean…if the company bankrupts etc..is their any chance of loosing ur money ?

6 Replies to “Why people still prefer Government banks over privet sector banks?”

  1. 2nd part of your question gives the answer of your first part. Yes it is the matter of security for which people go to nationalised banks.

  2. The private Banks are not secure in my view because some of the Private Banks are turning their BANK BOARD and Leaving with Full our money. for that reason the most of the people goes for the national banks because no one will like to loose the money which they had earned.

  3. First of all is the security of the money Deposited and secondly their Investment Pattern and thirdly their various adopted policies.these are the main reasons why people are still Hanging on Nationalised Banks.For Instances few year back ICICI had Liquidity problems and people had to make queue before ATM later HDFC had some problem about Investment Pattern and GOVT. had to come out with clarification on Foreign Bank issue.Such is the state of Affair of these two private sector banks.

  4. actually the recent debacles in the economies …i mean… recession etc.. these things have made peopl risk averse than before.. peopl want to sacrific little bit of their gains for security of their funds.. a conservative frame of mind has contributed for this preference….

  5. well the rules and regulations are tougher in private sector banks are a little tougher
    they want 10,000 as a minimum balance in icici like that even for small violations they may charge penalties and some smalll private sector banks have lesses branches where public sector branches have more
    regarding security or safety of the deposits both are more or less same but some people think that pb sector bnks are owned by govt only and more safe

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