Posts on bank closures ‘baseless rumours’: IBA

Lenders say depositors’ money is ‘safe’

FOR BUSINESS LINE: ANXIOUS DEPOSITORS THRONGED THE AMEERPET BRANCH OF GLOBAL TRUST BANK TO WITHDRAW THE AMOUNT. A DEPOSITOR COUNTING CASH AT THE BANKS COUNTER ON THURSDAY AFTERNOON. PIX-A. ROYCHOWDHURY/HYD. JUNE-06/2002

The Indian Banks’ Association (IBA) has dismissed social media posts about closures at public sector banks as ‘baseless’ rumours.

“There are rumours in some segments of social media messages based on misinformed communications and spreading false information about adverse financial strength and future of some public sector banks arising out of prompt corrective action (PCA) framework of RBI,” IBA said in a statement on Monday.

“It is clarified by IBA that these rumours are baseless,” the lenders’ body said.

“The corrective measures under PCA will help improve overall performance of these banks. IBA assures general public and depositors that there is no cause for fear or panic and they should not fall prey to false reports and their money is safe,” the IBA added in the statement.