INSUBCONTINENT EXCLUSIVE:
The messages are being circulated a day after RBI placed restrictions on PMC Bank.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.The nation's top banking sector
bureaucrat elaborated in another tweet.This is the second time in less than two years that policy makers have had to publicly come out in
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
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.Get Breaking news, live
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