RBI Refutes Rumours On Social Media Regarding Bank Shutdowns
The Reserve Bank of India (RBI) logo is displayed inside the central bank building in Mumbai, India. (Photographer: Karen Dias/Bloomberg)

RBI Refutes Rumours On Social Media Regarding Bank Shutdowns

Bookmark

The Reserve Bank of India on Wednesday refuted rumours on social media regarding shutdown of certain commercial banks.

"Reports appearing in some sections of social media about the RBI closing down certain commercial banks are false," the central bank said in a statement.

Finance secretary Rajeev Kumar said the government was in process of strengthening public sector banks by infusing capital in them.

Messages are circulating in various social media platforms that RBI will shut down nine banks permanently, with appeals being made that people should withdraw their money from them.

The rumours surfaced a day after RBI imposed restrictions on withdrawals in Punjab & Maharashtra Cooperative Bank (PMC Bank), affecting lakhs of customers.

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

According to the plan:

  • Punjab National Bank will take over Oriental Bank of Commerce and United Bank
  • Canara Bank will take over Syndicate Bank
  • Union Bank of India will take over Andhra Bank and Corporation Bank
  • Indian Bank will be merged with Allahabad Bank

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

And earlier, IDBI Bank Ltd. was taken over by Life Insurance Corporation of India.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.