New Delhi | Jagran Biz Desk: The Reserve Bank of India (RBI) on Wednesday denied reports of closing at least nine commercial banks soon. These are just mischievous rumours on social media about RBI shutting some banks, said Finance Secretary Rajeev Kumar.

"There is no question of closing any public sector bank, which are articles of faith. Rather the government is strengthening public sector banks with reforms and infusion of capital to better serve its customers," he said.

Earlier, Twitter posts had said that RBI will shut nine banks permanently-- United Bank of India, Dena Bank, Central Bank of India, Indian Overseas Bank, Andhra Bank, UCO Bank, Bank of Maharashtra, IDBI Bank and Corporation Bank.

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The development comes a day after RBI restricted Punjab and Maharashtra Co-Operative (PMC) Bank withdrawal limit to Rs 1,000 for the next six months. The move sparked outrage among customers who staged protests at some of its branches while some of them showed anger on social media saying it is unfair that they are unable to withdraw their own money.

However, the central bank made it clear that the directions to PMC Bank should not be considered as cancellation to banking license. PMC Bank can continue to undertake banking business with restrictions till further notice/instructions, it said.

The Mumbai based lender was established in 1984 and includes 137 branches across India in states such as Madhya Pradesh, Andhra Pradesh, Gujarat, Goa, Karnataka, Maharashtra and Delhi. It ranks among top 10 co-operative banks in the country.

(with ANI inputs)

Posted By: James Kuanal