Keeping an eye on Yes Bank crisis since 2017: Finance Minister Nirmala Sitharaman
New Delhi : Finance Minister Nirmala Sitharaman on Friday said that the crisis in Yes Bank has not cropped up suddenly. "We had been keeping an eye on the bank since 2017," she said at a press briefing on Friday evening.
The Finance Minister claimed that after thorough scrutiny in 2018, the Reserve Bank of India (RBI) recommended that the top leadership of Yes Bank (CEO and MD) were not capable enough to run the bank.
"A new CEO was appointed in September 2018 as a result. Cleaning up of bank started since then," said Sitharaman adding that Rs 1 crore was levied as fine on the bank.
"Sebi also started investigation from September 2019 on insider trading related matter," said the finance minister.
The management kept assuring the government that the efforts are being made to revive the situation, but nothing got materialized in the given time frame.
She also said that the RBI has taken certain steps to contain the crisis and protect the interests of the depositors. "Among them, the central bank was put under the moratorium, withdrawal limit was capped, a new administrator was brought in by superseding the management, and a scheme prepared by the RBI to restructure the bank," said Sitharaman.
She also said that the employment of the bank staff will also be maintained for one year.
Earlier on Friday, she assured that there will be no loss of depositors money in the bank.
"We have been monitoring the situation. Now that RBI has come up with a plan, a resolution will be found at the earliest. I want to assure the depositors and investors that both the RBI and the government are looking into the issue. There is no need to panic, their money is safe," Sitharaman had said.
"We have taken a course which will be in everybody’s interest. RBI has assured that a resolution will be found as soon as possible," she added.