Prompt corrective action not aimed at causing inconvenience to public: RBI

Statement follows rumours alleging restrictive actions would be imposed on few weak banks

The Reserve Bank of India (RBI) on Monday clarified that its prompt corrective action (PCA) on banks is only to discipline erring banks and not to inconvenience the customers.

The central bank was forced to issue the circular after misinformed posts were circulated in social media and on WhatsApp implying that the central bank was on course to impose restrictive actions on some weak banks. The message, in particular, drew parallels to Kapol Cooperative Bank on which the central bank has imposed some withdrawal restrictions. The fake posts, warning public of the safety of their deposits, were forwarded by many