RBI denies rumours of bank closures after curbs on local lender spark fear

This is the second time in less than two years that policy makers have had to publicly come out in support of banks

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 support of