"Mischievous Rumours": No Question of Closing Any Bank, Tweets RBI
Authorities are scrambling to suppress speculation about bank closures a day after the regulator imposed restrictions on a local lender, the latest indication of how jittery savers are amid a slowing economy and scandals in the financial system.
"Reports appearing in some sections of social media about RBI closing down certain commercial banks are false," the Reserve Bank of India said in a terse Twitter message on Wednesday.
Reports appearing in some sections of social media about RBI closing down certain commercial banks are false.
September 25, 2019The nation's top banking sector bureaucrat elaborated in another tweet.
There are mischievous rumours on Social Media (picture below) about @RBI closing some banks. No question of closing any #PSB, which are articles of faith. Rather Govt is strengthening PSBs with reforms and infusion of capital to better serve its customers @FinMinIndia @PIB_India pic.twitter.com/43XoZGoOa0
September 25, 2019This is the second time in less than two years that policy makers have had to publicly come out in support of banks. The latest trigger was the imposition of regulatory curbs on regional lender Punjab & Maharashtra Co-operative Bank, which pushed depositors to swarm branches to withdraw their savings.
While PMC is far smaller than top tier of lenders known as "commercial banks," it is one of the biggest lenders in the second tier known as cooperative banks. At 0.2 per cent of the sector's total loans, PMC doesn't immediately pose a systemic risk.
Authorities however seem concerned about an erosion of confidence after the Reserve Bank of India on Tuesday capped withdrawals from PMC at 1,000 rupees ($14) -- just about enough to buy a quarterly train pass in Mumbai -- and barred the lender from fresh lending for six months.
It didn't offer any reasons for the move but PMC's Managing Director Joy Thomas told BloombergQuint on Wednesday that the regulator is investigating the bank's books for bad loans and the bank has enough cash to repay all deposits and other obligations without any support from the government.
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High US Salaries, No Green Card Certainty: The Financial Calculation Facing Indian H-1B Families
The suspension of PERM processing at eight technology employers does not cancel existing H-1B visas. What it does is force a question many Indian families have been avoiding: is the US salary worth tying your career and family plans to one employer?
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Swiggy vs Eternal: Food Delivery's Two Rivals Are No Longer In The Same Race
Eternal is building a private AI assistant, dark.ai. Swiggy is still working out how to make Instamart pay, with an operating loss of Rs 895 crore in the July-September quarter while Blinkit stayed profitable.
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Where You Live Shapes How You Get To Work | The Reason Why
Two-wheelers are the most popular way to get to work in India, accounting for nearly 43% of workplace commutes.
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Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
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Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
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India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
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France's Economy & Politics Are In Crisis | The Reason Why
Let's look at how the French economy and politics evolved under Nicolas Sarkozy, Franois Hollande and Emmanuel Macron.
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You May Inherit The Business. You Must Earn Its Credibility.
Succession tests the founder's ability to share authority as much as it tests the next generation's readiness to assume it.
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Signing Deals Is One Thing; Making Them Work Is Another | The Week In Whys
Sometimes, things don't turn out as planned. Indian companies have lost some bids to rivals, some projects won't produce until 2030.
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FOMC Wall, PERM Suspension, Hospital Stocks | Talking Points This Week
A PERM suspension would directly affect green-card sponsorship rather than H-1B visas, so the near-term earnings impact could remain relatively limited. The key question is whether this marks a new phase in US scrutiny of Indian IT.
