Monday, September 26, 2022

RBI dismisses social media rumours, says not shutting any bank

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Mumbai: A day after the Reserve Bank of India (RBI) placed restrictions on Punjab & Maharashtra Cooperative (PMC) Bank, it has said that no commercial banks are going to be shut. An official statement released by the RBI on Wednesday said, “Reports appearing in some sections of social media about the RBI closing down certain commercial banks are false.”

The clarification comes as messages are circulating on social media platforms that nine commercially banks will be closed permanently by the RBI. These messages are also urging people to withdraw their money from these banks.

‘No question of closing any PSB’

While describing these social media messages as “mischievous,” Finance Secretary Rajiv Kumar said that there is no question of shutting any public sector bank (PSB). “No question of closing any #PSB, which are articles of faith. Rather Govt is strengthening PSBs with reforms and infusion of capital to better serve its customers,” Kumar said in a Tweet.

Most of the banks that have been named in the messages are those that have either been merged with other banks or are in the process of being merged.

The backdrop

Last month, the Ministry of Finance announced that 10 public sector banks will 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.

The Centre has already merged Vijaya Bank and Dena Bank with Bank of Baroda.

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