Nirmala Sitharaman at Yes Bank: RBI to investigate what went wrong at Yes Bank | India Business News
When addressing a press conference after the RBI (Reserve Bank of India) replaced the Yes Bank board and placed withdrawal restrictions, he said the bank was being monitored since 2017 and that developments related to it They were being monitored day by day.
Since 2017, the central bank has noted governance problems and weak regulatory compliance at Yes Bank, in addition to incorrect asset classification and risky credit decisions, he said.
When finding risky credit decisions, the RBI advised a change in management, he said.
These decisions were made in the interest of the bank’s health, and a new CEO was appointed in September 2018 and the bank’s cleanup began, he said, adding that the investigation agencies had also found irregularities.
She said the RBI has been asked to evaluate the causes of the problems and identify the role played by the people.
The government, he said, wants the RBI to ensure that due process is followed urgently.
The restructuring scheme will be fully effective within 30 days, he said and added that the State Bank of India (SBI) has expressed its willingness to invest in Yes Bank.
The finance minister also said that the employment and salary of Yes Bank employees have been insured for one year.
She said Anil Ambani Group, Essel, ILFS, DHFL and Vodafone were among the stressed companies to which Yes Bank had exposure.
The finance minister responded to congressional leader and former finances P Chidambaram saying that United Western Bank collapsed in 2006 under “self-appointed competent doctors.”
“We are ensuring that the interests of customers are protected,” he said. “We can assure all depositors that their money is safe.”
“I am closely monitoring each institution that requires that type of monitoring together with RBI,” he added.