Daijiworld Media Network - Bengaluru (SP)

Bengaluru, Jul 20: Of late, rumours that nine public sector banks are being closed down, are being spread through WhatsApp and social media. The finance ministry of the union government and Reserve Bank of India (RBI) have clarified that these rumours are baseless and false.

The rummours which are making the rounds since the last some weeks mention that the government has decided to close down Corporation Bank, UCO Bank, Bank of Maharashtra, IDBI Bank, Andhra Bank, Indian Overseas Bank, Central Bank of India, Dena Bank, and United Bank of India. Some sites also mention that these banks have been listed for merger with other bigger banks.

However, it is gathered that these banks have been listed for prompt corrective action by Reserve Bank of India because of their high ratio of bad loans and weak capital adequacy ratio. RBI deputy governor, S S Mundra stated on July 14 that these banks are brought under prompt corrective action for bringing improvement in their functioning and efficiency. He added that it does not indicate about their future of the concerned banks like closure of banking operations.

He said that the guidelines governing prompt corrective action, which have been in vogue since 2002, are meant to take steps to halp the banks will regain the level of financial strength as prescribed by RBI.