YES Bank row: Maharashtra civic bodies asked not to keep money in pvt banks

In the wake of Yes Bank crisis, Maharashtra minister Eknath Shinde on Friday said that the government will ask the civic bodies in the state not to park their money in private sector banks.

Taking part in discussion on the Yes Bank issue, he said the government would take a review to know the quantum of civic bodies' funds stuck in that bank.

"If a civic body has violated norms and kept its deposits in the private banks expecting higher interest rates, they will face action," he said.

The government will take some concrete steps to avoid such a crisis in the future, he added.

NCP MLC Hemant Takale said, "Nashik Municipal Corporation's Rs 311 crore funds, besides Rs 176 crore it received under various central schemes are stuck in Yes Bank. Similar crisis is being faced by Pimpri Chinchwad Municipal Corporation and Pune Municipal Corporation."

Home Minister Anil Deshmukh said, "The state will protect all the deposits of the civic bodies kept in Yes Bank. But we will take strict action against the civic bodies who refuse to abide by the rules.