FACT CHECK: Is Reliance Jio buying Federal Bank at $ 10 billion?

A purported media release of Reliance Jio is viral on social media Users are claiming that Reliance Jio will soon acquire Federal Bank at 10 billion US dollars.

By Misha Rajani  Published on  20 Sep 2021 2:59 AM GMT
FACT CHECK: Is Reliance Jio buying Federal Bank at $ 10 billion?

HYDERABAD: A purported media release of Reliance Jio is viral on social media Users are claiming that Reliance Jio will soon acquire Federal Bank at 10 billion US dollars.

"Reliance Jio to Acquire Federal Bank at 10 Billion USD valuation," reads the online post.



FACT CHECK:

The media release is fake.

Firstly, the Banking Regulation Act, 1949, states that the Reserve Bank of India (RBI) does not allow corporate or industry houses to own or run a bank to date. In November 2020, the RBI's internal working group reviewed the corporate structure of private sector banks and suggested sweeping changes in bank ownership including allowing large corporate and industrial houses to own banks by amending the Banking Regulation Act, 1949.

"The Reserve Bank of India may not allow corporate houses to own banks, despite its internal working group suggesting to adopt a liberal stance", Economic Times reported.

Large corporate houses in India still can't own a bank due to conflict-of-interest clauses.

https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/BANKI15122014.pdf

https://www.business-standard.com/article/economy-policy/rbi-working-group-backs-allowing-large-corporates-to-be-promoters-of-banks-120112000857_1.html

Secondly, the dateline mentioned in the viral release is September 13. However, no announcement has been made by SEBI or any credible media organization.

Thirdly, according to CNBC TV 18 (Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary) reported that Reliance Jio has filed a complaint with the Mumbai Crime Branch about the fake release.

"The fake release is being circulated in a WhatsApp media and analyst group by an unknown identity without even giving his number," said Jio in its complaint to the joint commissioner of the Mumbai Crime Branch.

Evidently, it is clear that the media release of Reliance Jio acquiring Federal Bank at 10 billion US dollars is fake.

Claim Review:Reliance Jio is acquiring Federal Bank at 10 billion US dollars
Claimed By:Social Media Users
Claim Reviewed By:Newsmeter
Claim Source:Social Media
Claim Fact Check:False
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