'It's mischievous, there's no move to close any PSB', RBI rebuts social media rumors on closure of 9 banks

Mumbai, September 25: Rebutting over the social media rumours swiftly, the Reserve Bank of India on Wednesday made it clear that no commercial banks are going to be shut. Finance secretary Rajiv Kumar discribed these social media messages as mischievous saying that the Centre was in process of strengthening public sector banks by infusing capital in them.

 

 

"Reports appearing in some sections of social media about the RBI closing down certain commercial banks are false. No question of closing any PSB, which are articles of faith. Rather Centre is strengthening PSBs with reforms and infusion of capital to better serve its customers", the central bank said in a statement.

 

This is a day after the RBI put certain restrictions on the Mumbai based Punjab and Maharashra Cooperative bank, where the depositors are now not allowed to withdraw more than Rs 1000 per month for next half a year. With this messages are circulating in various social media platforms that nine banks will be closed down permanently by the RBI and appeals being made to public to withdraw their money from them.

 

Most of the banks named in the messages are those that have been either merged with other banks or are in the process of being merged. Last month, the government had announced that 10 public sector banks would be merged into four.

 

Oriental Bank of Commerce and United Bank of India will be merged with Punjab National Bank, while Syndicate Bank will become part of Canara Bank. Andhra Bank and Corporation Bank will be merged with Union Bank of India, and Allahabad Bank with Indian Bank.

 

These are just a set of restrictions imposed while the licence of the bank yet remains intact. Meanwhile, this move of the Reserve Banks has nothing to do with the economic slowdown as the capital to the cooperative banks flows through the Centre. Whatever is the reason, it is working of bankers not citizens.