Yes Bank Crisis | 50,000 Capping Temporary, Government Monitoring Situation: Finance Minister Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Friday assured Yes Bank depositors that the capping of Rs 50000 is temporary and the government is taking all necessary measures to normalise the situation. While addressing the media, Nirmala Sitharaman said that the Reserve Bank of India has assured reconstruction plan will come into play within the moratorium period and the State Bank of India (SBI) has also expressed willingness to invest in Yes Bank.

"Since 2017, RBI has been continuously monitoring and scrutinizing Yes Bank. It noticed that there were governance issues and weak compliance in the bank. There was a wrong asset classification together with risky credit decisions," Nirmala Sitharaman said. "I have asked RBI to assess, what has caused these difficulties for the bank and clearly identify the roles played by various individuals in creating the problem and not addressing it," she added.

Directing the RBI to ensure due process of law is set to roll with a sense of urgency so that we should find out as to who led to the problem of this size and magnitude, Sitharaman said that the government is committed to ensure depositors interests are safeguard. "Yes Bank has lent money to some of the very stressed corporations like Anil Ambani Group, Essel, Dewan Housing Finance Corporation (DHFL), Infrastructure Leasing & Financial Services Limited (IL&FS), and Vodafone," the Finance Minister said.