The #LakshmiVilasBank is under moratorium, which means depositors cannot withdraw #money above the amount mandated by the #RBI. The bank will eventually be merged with #DBSBank. The question is, are Indian banks and banking system the most fragile they have ever been? Will more banks go under and what happens to depositors in this scenario? #BOOM Explains. Tamal Bandyopadhyay, Author & Consulting Editor, Business Standard, says that this situation doesn't mean all banks will be insolvent. Lakshmi Vilas Bank has reported losses for 10 straight quarters. There are not too many weakling banks left in the system anymore. In the last 2 years, the RBI has repeatedly released statements that the banking system is safe. He also says that the government has raised the deposit guarantee from INR 1 lakh to INR 5 lakh. If a depositor isn't sure of the quality of a banks management. The deposit money can be split among family members as well as banks to ensure a back up plan is always in place. Watch BOOM's Govindraj Ethiraj interview Tamal Bandyopadhyay on the state of the Indian banking system and safety measures for the common depositor.