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Complete regulatory failure: P Chidambaram slams govt over Yes Bank crisis

Senior Congress leader and former Finance Minister P Chidambaram has hit out at the Centre over Yes Bank crisis accusing the government of a complete regulatory failure. Chidambaram's statement has come after Yes Bank was put under moratorium and depositors withdrawal limit was capped at Rs 50,000.

India TV Business Desk India TV Business Desk
New Delhi Updated on: March 06, 2020 13:34 IST
Yes Bank, P Chidambaram, Congress, RBI, SBI

Senior Congress leader P Chidambaram slams Centre over Yes Bank crisis

Senior Congress leader and former Finance Minister P Chidambaram has hit out at the Centre over Yes Bank crisis accusing the government for a complete regulatory failure. Chidambaram's statement has come after Yes Bank was put under moratorium and depositors withdrawal limit was capped at Rs 50,000.

Slamming the government over Yes Bank crisis, P Chidambaram said, "I wonder if this is the end or will there be more in the line. Yet the government keeps absolutely silent. Let's see what depositors of Yes Bank do, I think they are as worried as depositors of PMC Bank. Let's see what unfolds now."

Yes Bank Crisis | What we know so far

  • Yes Bank ATMs run out of cash across several cities after RBI capped withdrawal limit of Rs 50,000.
  • RBI governor assures for a swift resolution, says outer time limit is one month. 
  • Yes Bank's shares plunged 25 per cent after the company was placed under a moratorium. The scrip suffered a massive beating and sank 24.96 per cent to Rs 27.65 -- its 52-week low -- on the BSE. On the NSE, it plummeted 20 per cent to Rs 29.45.
  • The Payments firm PhonePe suffered an outage in its services on Thursday after its banking partner Yes Bank was placed under a moratorium by the government.
  • Chief Economic Advisor Krishnamurthy Subramanian on the Yes Bank crisis said, "I want to assure all depositors that their funds will remain safe, and there is no need to panic."
  • Ex-SBI CFO Prashant Kumar takes charge as Yes Bank new administrator.

 Facing capital crunch, Yes Bank was put under a moratorium by the Reserve Bank of India on Thursday and withdrawal limit was capped at Rs 50,000 for a month. The RBI has also superseded Yes Bank's board.

The RBI said that the bank's board was superseded "owing to a serious deterioration in the financial position of the Bank".

Meanwhile, RBI Governor on Friday said that a decision has been taken not only to deal with the problem in the individual entity but also to maintain the resilience of the Indian financial sector.

He said that the RBI's decision on Yes Bank will help maintain the resilience of the financial sector.

(With input from agencies

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