(LiveMint)
The government and the Reserve Bank of India (RBI) said Friday there was no question of closure of any public sector banks (PSB). RBI’s decision to initiate a “prompt corrective action” (PCA) against large state-owned lender Bank of India led to rumours that the government may close down some banks.
In a statement issued Friday, RBI said that it has come across some “misinformed communication” circulating in some section of media, including social media, about closure of some public sector banks in the wake of their being placed under the PCA.
The government too dismissed such rumours saying that on the contrary it is planning to strengthen the public sector banks. “No question of closing down any bank. Government is strengthening PSBs by 2.11 lakh crore recapitalisation plan. Do not believe rumour mongers. Recap, Reforms roadmap for PSBs firmly on track,” said financial services secretary Rajeev Kumar in a tweet.
