Business not as usual: YES Bank changes way banks, Mint Road are looked at

Former RBI governor, Urijit Patel, had said in the aftermath of the blowout at PNB that the banking regulator was better positioned when it came to the oversight of private banks.

YES Bank can be expected to fashion history for some time to come. Tucked away in Section 35 of the Banking Regulation Act (BR Act: 1949) is a little-known, but powerful provision — “to examine on oath any director or other officer (or employee) of the banking company in relation to its business”. This power given to the Reserve Bank of India (RBI) has never been used in its 85-year old history. A senior official of a bank had only to be reminded of it in the past — he fell in line. YES Bank’s top brass, drawn from its superseded management,