RBI rejects social media rumours about closure of 9 commercial banks

Reporter simran verma.

RBI has clarified that the social media rumours about the closure of nine commercial banks are false.


  • RBI says reports regarding closure of 9 banks false
  • A viral message on social media said RBI is planning to shut nine commercial banks
  • The fake message spread online after RBI cracked the whip on PMC bank

The Reserve Bank of India (RBI) clarified in a statement that social media rumours regarding the closure of some commercial banks are false.

A message, which says RBI is planning to close nine banks permanently, went viral on social media and resulted in panic among public in the backdrop of the top bank’s actions against Punjab and Maharashtra Cooperative (PMC) Bank on Tuesday.

However, RBI in a statement rejected rumours about closure of nine banks–Corporation Bank, UCO Bank, IDBI, Bank of Maharashtra, Andhra Bank and Indian Overseas Bank.

“Reports appearing in some sections of social media about RBI closing down certain commercial banks are false,” RBI said in a tweet.

Finance Secretary Rajiv Kumar called the rumours about RBI closing shutters on some banks “mischievous” and that there is “no question of closing any public sector bank”.

“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 govt is strengthening PSBs with reforms and infusion of capital to better serve its customers,” Kumar said.

On Tuesday, RBI cracked the whip on Mumbai-based PMC bank by imposing restrictions on its operations for six months. As per the announcement, the bank cannot issue a loan or open fixed deposit accounts for the next six months.

However, what has led to panic among the co-operative bank’s customers is the fact that RBI has set Rs 1,000 as withdrawal limit on transactions from each account for the period.

This has triggered panic among thousands of the bank’s customer as local police had to deploy security personnel to control protesting bank customers.

However, the PMC Managing Director Joy Thomas admitted that it was the bank’s fault which led to the RBI’s restrictions.

He said, “We regret the violation of RBI rules. Due to this, our customers may face difficulties for six months. As MD, I take responsibility for this. With this, I assure all depositors that before 6 months we will rectify our deficiencies. ”
Thomas added that further efforts will be made to remove the restrictions by rectifying irregularities.

“I know that this is a difficult time for all of you. I also know that no apology can end this pain. All of you are appealing that please stay with us and cooperate. We assure that we will definitely overcome this situation and get stronger,” Thomas added.

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