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Wasn't RBI aware that Yes Bank was on a loan giving spree? asks Chidambaram

Yes Bank Crisis: Former Union Finance Minister and veteran Congress leader P Chidambaram lashed out at the government and Reserve Bank of India over Yes Bank crisis. He addressed media on Saturday and questioned RBI's action in preceding years.

India TV Business Desk India TV Business Desk
New Delhi Updated on: March 07, 2020 16:59 IST
Wasn't RBI aware that Yes Bank was on a loan giving spree? asks Chidambaram
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Wasn't RBI aware that Yes Bank was on a loan giving spree? asks Chidambaram

Yes Bank Crisis: Former Union Finance Minister and veteran Congress leader P Chidambaram lashed out at the government and Reserve Bank of India over Yes Bank crisis. He addressed media on Saturday and questioned RBI's action in preceding years.

"Wasn't RBI aware that Yes Bank was on a loan giving spree?" asked Chidambaram.

Yes Bank has a huge pile of bad debts (NPA) and has been put under moratorium by Reserve Bank of India. Depositors can currently withdraw Rs 50,000 at the most from their accounts.

State Bank of India is expected to intervene in the crisis and rescue Yes Bank. However, Chidambaram said that resolution plan poposed by SBI is "bizarre"

"The Resolution plan proposed by SBI for Yes Bank is bizarre when bank's net worth is perhaps 0. It would be better for SBI to take over, on RBI's order, Yes Bank's loan book at Rs 1 & to assure depositors that their money will be returned," Chidambaram was quoted by ANI as saying.

P Chidambaram was Union Finance Minister from 2012 to 2014.

Yes Bank crisis has continued to cause panic among the depositors as they stood in long queues to withdraw their money. 

Customers are also facing trouble because net banking services are not working and some even complained that their credit cards are also not working.

"Internet banking is not working, even the credit card has stopped working; however, I withdrew my amount through cheque," said Lalit Kumar, a Yes Bank customer of its Gole Market branch in New Delhi.

Most of the Automated Teller Machines (ATMs) wore a deserted look due to non-availability of cash.

A Delhi-based customer said he was able to withdraw limited cash of about Rs 3,000-4000 only from an ATM, adding the cheque withdrawal helped him take out the remaining amount under the moratorium restriction.

(With agency inputs)

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