Self-fulfilling prophecy is a common phrase which means people expecting something positive or negative to happen behave in a way that makes the expectation come true even though it was not supposed to.A bank run is an apt example of a self-fulfilling prophecy and its on in several parts of Telangana and Andhra Pradesh . The Financial Resolution and Deposit Insurance (FRDI) Bill is still a Bill and the government has clarified on the bail-in clause and said that depositors will be protected. All their deposits are safe and secure," Swaminathan saidAs in the present case, most bank runs are false scares, but if the bank run spreads wider, it can actually lead to the failure of a bank. The scare due to the FRDI Bill and bank scams is witnessed only in some parts of these two states. The only challenge it poses is that banks have to source money from neighbouring states.

Source: Economic Times March 29, 2018 09:58 UTC