The Reserve Bank of India (RBI) has issued a statement clarifying that the rumors surfaced on social media regarding the closure of 9 commercial banks are false.

A rumored message that said the Reserve Bank of India was planning to close 9 scheduled commercial banks permanently went viral in social media creating panic among public. This was seen in the light of latest restrictions that the apex bank imposed on the Punjab and Maharashtra Cooperative Bank (PMC) on Tuesday.

The nine banks that were rumored to be closing were- Corporation Bank, UCO Bank, IDBI, Bank of Maharashtra, Andhra Bank and Indian Overseas Bank. However, the RBI rejected the rumors.

“Reports appearing in some sections of social media about RBI closing down certain commercial banks are false” wrote RBI on its official twitter handle.

Responding to the rumors, Finance Secretary Rajiv Kumar termed them mischievous and said sternly that there was no question of closing any public sector banks. He said “there are mischievous rumors on social media that RBI is closing some banks. There is no question of closing any PSB, they are articles of good faith.”

Earlier, on Tuesday RBI cracked the whip on the Punjab and Maharashtra Cooperative Bank by imposing restrictions on its operations for a period of six months. The PMC Bank cannot lend or open fixed deposit accounts for the next 6 months.

PMC Managing Director Joy Thomas acknowledged that it was bank’s fault that led to the restrictions. Taking moral responsibility for the consequences, he assured all the customers that the bank would take all necessary measures to rectify all the deficiencies within six months.




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