Diversification in Bank Account

Do we need Diversification in bank accounts ?

Well Yes

One of my Uncle is located in America doing business by having Silicon valley bank(SVB)  as their primary bank account and he didn't thought of having another bank account as secondary bank account, because SVB bank is one of the largest bank and also tech wise it is advanced one.

My uncle's friend, who is also doing business there, having 3 bank accounts.

And the rest, we all know that SVB collapsed due to liquidity issues. At that time my uncle's business faced a lot of issues as they

📌 Can't able to pay to their suppliers
📌 Can't able to pay the salary
📌 And can't able to manage the day to day expenses like maintenance.

But his friend luckily has 3 different bank accounts so that he managed the situation well.

Offcourse, after that government took over the bank and my uncle got the money back. That's a different story.
But the lesson he learnt will be useful for us too.

📌 Though we are having bank accounts in a big Bank like HDFC Bank , there is no guarantee that it will not fail.
📌 It seems diversification is not only for investments , but also for bank accounts.
📌 Don't give over exposure to one bank account, split your money in at least 2 bank accounts, so that in future even one bank got failed at least we can manage with the money sitting in  another account.

📌 And this issue is not only for those who are doing business but also for common salaried people like us.

I hope I explained clearly.