New Delhi: The Reserve Bank of India on Wednesday in a notification clarified that the reports appearing in some sections of social media about the central banking institutions closing down are not true.
“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,” Finance Secretary Rajeev Kumar was quoted as saying by ANI.
The development comes after the RBI imposed new restrictions on the Punjab and Maharashtra Cooperative (PMC) Bank Limited, Mumbai to not allow its customers withdraw cash above Rs 1,000 for a period of six months from September 23.
Following the announcement from the RBI, a number of posts on Twitter said the central bank is closing down at least nine banks such as Corporation Bank, IDBI Bank, Bank of Maharashtra, UCO Bank, Andhra Bank, Indian Overseas Bank, Central Bank of India, Dena Bank and United Bank of India.
With the new rule from the central bank, the Punjab and Maharashtra Cooperative Bank customers will not be able to withdraw over Rs 1,000 from their savings, current or other deposit accounts.
While issuing the direction to the PMC Bank, the RBI had made it clear that the instructions to the PMC Bank should not be construed as a cancellation of a banking licence by the central bank. As per the RBI rule, the PMC Bank can continue its banking business with the new restriction till further notice from the RBI
Established in 1984, the PMC Bank has branches in Maharashtra, Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh, and Madhya Pradesh.
Notably, the PMC Bank has the total deposits of Rs 11,000 crore, total loan book is of Rs 8,383 crore and it is among the top 10 cooperative banks of India.
According to reports, police forces were deployed around the PMC branches in Mumbai to check any untoward incidents as thousands of anguished depositors rushed to the head office of PMC in Bhandup of northeast Mumbai and its various branches across the city to withdraw money.