The government and Reserve Bank of India rushed to douse the fire after social media went agog with the reports that RBI is closing down at least nine commercial banks in India soon.

“Reports appearing in some sections of social media about RBI closing down certain commercial banks are false,” the RBI said in a tweet, a day after the Punjab and Maharashtra Co-operative Bank was barred from routine business transactions for the next six months and its withrawal limit was capped at Rs 1,000.

Reports appearing in some sections of social media about RBI closing down certain commercial banks are false. — ReserveBankOfIndia (@RBI) September 25, 2019

Separately, Finance Secretary Rajeev Kumar tweeted saying, “there are mischievous rumours on social media about @RBI closing some banks. No question of closing any #PSB, which are articles of faith. Rather Government is strengthening PSBs with reforms and infusion of capital to better serve its customers”.

Several Twitter posts said that nine banks will be closed permanently by the RBI, namely the Corporation Bank, IDBI, Bank of Maharashtra, UCO Bank, Andhra Bank, Indian Overseas Bank, Central Bank of India, Dena Bank and United Bank of India.

Among other things, the Mumbai-based Co-Op Bank is not allowed to grant or renew any loans. The PMC Bank has Rs 11,617.34 crore deposits Rs 8,383.33 crore loans on its books as on March 31.

The RBI, however, had made it clear that the directions to PMC Bank should not be construed as cancellation of banking licence by the central bank. PMC Bank can continue to undertake banking business with restrictions till further notice/instructions from RBI.

But the move sparked outrage amongst customers, who staged protests at some of PMC's branches across the country.

PMC Bank has branches in Maharashtra, Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh and Madhya Pradesh. Born in 1984, PMC ranks among top 10 cooperative banks in India and has s branches in six states.