Yes Bank Crisis: Congress Trains Its Guns At Govt
The Congress party led by Rahul Gandhi targeted the Narendra Modi government over the crisis-ridden Yes Bank. In a post on the microblogging site Twitter, Rahul Gandhi took a dig at the government saying, 'No Yes Bank'. The Wayanad MP added that PM Modi had ruined the economy with his ideas.
Former finance Minister P Chidambaram also pointed a finger at the Modi government's inability to regulate financial institutions in his tweet.
No Yes Bank.
— Rahul Gandhi (@RahulGandhi) March 6, 2020
Modi and his ideas have destroyed India's economy.
#NoBank
BJP has been in power for six years. Their ability to govern and regulate financial institutions stands exposed
— P. Chidambaram (@PChidambaram_IN) March 6, 2020
First, it was PMC Bank. Now it is YES Bank. Is the government concerned at all? Can it shirk its responsibility?
Is there a third bank in the line?
The Reserve Bank of India superseded the Yes Bank board and took control of the institution. The RBI put a cap off Rs.50,000 on withdrawal.
The Chief Economic Advisor to the government observed that the Union government and RBI are finding the best possible solution to the Yes Bank crisis including investment by a consortium.
The RBI governor Shaktikanta Das has assured depositors that there is no cause for panic and that their money is safe. The RBI governor also said that depositors will not be put to hardship for long.
The government does not want a run on the bank by depositors as this would be detrimental to its efforts to save the bank. The RBI has hiked the withdrawal limit for marriage expenses to Rs. 5,00,000 and clarified that demand drafts and pay orders are to be issued in full. The withdrawal limit for medical expenses has also been enhanced to Rs.5 lakhs.
Meanwhile, the SBI chairman reached Parliament to meet finance Minister Nirmala Seetharaman over the Yes Bank crisis.