You are here: Home » Economy & Policy » News
Business Standard

YES Bank crisis: FM Nirmala Sitharaman asks RBI to fix accountability

Sitharaman said the RBI and the government had been closely monitoring YES Bank since 2017

Indivjal Dhasmana  |  New Delhi 

FM Nirmala Sitharaman speaks on Union Budget 2020 at the #BreakfastBriefing session organised by India Foundation in New Delhi. Photo: PTI
Sitharaman said the government wanted the RBI to ensure that due process of law was followed | File photo

Finance Minister (pictured) has asked the (RBI) to fix accountability in the imbroglio. She told reporters on Friday that the had been asked to assess the causes of problems at YES Bank and the role played by individuals. The government, she said, wanted the to ensure that due process of law was followed with a sense of urgency and see if there was any regulatory gaps. She sought to differentiate between the way in which the was handling the issue and the one adopted by the United Progr­essive Alliance (UPA) government in such cases. "Against how many people did they (government) take action," Sitharaman asked.

Taking a dig at senior leader and former finance minister P Chidambaram, she said United Western Bank collapsed in 2006 under the "self-appointed competent doctors".

Chidambaram had in a series of tweets asked why should state-owned State Bank of India (SBI) invest in

She said the merged it with IDBI because of which the latter also lost. Also, the government merged the failed Global Trust Bank with and washed its hands, she alleged.

On the other hand, the was ensuring that consumers’ interests were protected. "Our approach has been to ensure that institutions don't collapse and above all to ensure that the interests of consumers, businesses, clients and depositors are safe. That is why the prime minister insisted that we increase the deposit insurance from Rs 1 lakh to Rs 5 lakh," she said.

Sitharaman said the and the government had been closely monitoring YES Bank since 2017.

Sitharaman said the government came into play in January 2020 after YES failed multiple times to raise capital from investors after making “genuine attempts”. “Once in November 2019 there was no longer scope for getting any money and coincidentally, the chairman of their audit committee resigned in January 2020 … that’s when we started engaging,” Sitharaman said.

First Published: Fri, March 06 2020. 22:07 IST
RECOMMENDED FOR YOU