Home Economy and Finance RBI refutes rumours of closure of 9 commercial banks

RBI refutes rumours of closure of 9 commercial banks

A message that said RBI is planning to close nine banks permanently, went viral on social media, causing panic among public right after the central bank imposed certain restrictions on Punjab and Maharashtra Cooperative (PMC) Bank.

After cracking the whip on the PMC bank, several rumours of the Reserve Bank of India (RBI) mulling to closing down of 9 commercial banks in the country started doing the rounds on social media. Taking cognisance of such misleading speculations, the Reserve Bank of India today issued a statement clarifying that the rumours regarding the closure of commercial banks are false.

A message that said RBI is planning to close nine banks permanently, went viral on social media, causing panic among public right after the central bank imposed certain restrictions on Punjab and Maharashtra Cooperative (PMC) Bank. According to a direction issued on September 24, RBI said that the account holders will not be able to withdraw more than ₹1,000.

Rejecting social media rumours, the official Twitter handle of the Reserve Bank of India put out a tweet saying, “Reports appearing in some sections of social media about RBI closing down certain commercial banks are false.”

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Finance Secretary Rajeev Kumar said, “There are mischievous rumours on social media about RBI closing some banks. No question of closing any public sector bank, which are articles of faith. Rather government is strengthening PSBs with reforms and infusion of capital to better serve its customers.”

According to reports, the Punjab and Maharashtra Cooperative Bank had been put under regulatory restrictions by the RBI owing to irregularities disclosed to the apex bank. In a message sent to the shareholders, the bank’s Managing Director Joy Thomas said, “I regret to inform you that your PMC Bank has been put under regulatory restriction under Section 35A of B.R. Act by RBI for a period of 6 months due to irregularities disclosed to RBI. As the MD of the Bank, I take full responsibility and assure all the depositors that these irregularities will be rectified before the expiry of six months.”

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