Mumbai, Oct 1 (TIWN) Allaying fears of a crisis in the country's banking system, the Reserve Bank of India (RBI) on Tuesday said that Indian banking system is safe and stable and there is not need to panic on "rumours".

The statement comes against the backdrop of the revelation of fraud in Punjab & Maharashtra Cooperative (PMC) Bank involving the Housing Development and Infrastructure Limited (HDIL).  "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," the RBI said in a tweet.  Among other violations, the PMC bank opened a number of dummy accounts to replace the stressed accounts held by Wadhawans-led HDIL.