Finance Minister Nirmala Sitharaman tries to allay fears amidst Yes Bank crisis

Finance Minister Nirmala Sitharaman on Friday said the government has asked the Reserve Bank to look into what went wrong at Yes Bank and fix individual responsibilities.

Addressing a press conference after the RBI superseded the board of Yes Bank and placed withdrawal restrictions, she said the bank was being monitored since 2017 and developments relating to it were being monitored on a day-to-day basis.

Since 2017, the central bank noticed governance issues and weak regulatory compliance at Yes Bank, besides wrong asset classification and risky credit decisions, she said.

Finance Minister Nirmala Sitharaman said that Reserve Bank of India is working towards for early resolution of Yes Bank issue. RBI governor has assured that there will be no loss to any Yes Bank depositor, the finance minister said, adding that the steps taken to take control of Yes Bank is in interest of depositors, bank and the economy.

“I want to assure every depositor’s money is safe, and I’m in constant touch with RBI. Both RBI and government are looking at Yes Bank issue in detail and the course of action will be in everyone’s interest. The immediate priority is to ensure Yes Bank customers are able to withdraw money within ₹50,000,” Finance Minister Nirmala Sitharaman said.

State Bank of India said on Thursday that “an in-principal approval has been given by the board to explore investment opportunity” in Yes Bank.

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