The crowd outside Yes Bank in Ahmedabad on Friday. (Express photo/Javed Raja)
Congress leader Rahul Gandhi on Friday hit out at the government over the Yes Bank crisis and accused Prime Minister Narendra Modi of “destroying the Indian economy”.
Taking to Twitter, the former Congress chief said, “No Yes Bank. Modi and his ideas have destroyed India’s economy.”
No Yes Bank.
Modi and his ideas have destroyed India’s economy.
— Rahul Gandhi (@RahulGandhi) March 6, 2020
Reacting to the Yes Bank crisis, former finance minister P Chidambaram said the government’s “ability to govern and regulate financial institutions stands exposed”.
“First, it was PMC Bank. Now it is YES Bank. Is the government concerned at all? Can it shirk its responsibility?” he wrote on the micro-blogging site.
BJP has been in power for six years. Their ability to govern and regulate financial institutions stands exposed
First, it was PMC Bank. Now it is YES Bank. Is the government concerned at all? Can it shirk its responsibility?
Is there a third bank in the line?
— P. Chidambaram (@PChidambaram_IN) March 6, 2020
Chidambaram was referring to the scam at Punjab and Maharashtra Cooperative Bank Ltd (PMC Bank), a leading cooperative bank headquartered, which went undetected for around 11 years. Preliminary investigations into the PMC Bank scam had pointed to elaborate window-dressing by the bank’s top brass, primarily by way of floating fictitious accounts belonging to dead account holders to hide the loans awarded to the bank’s single biggest borrower, real estate firm HDIL.
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“Is there a third bank in the line?” Chidambaram added.
Yes Bank was on Thursday placed under a moratorium, with the RBI capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board.
The bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.
For the next month, Yes Bank will led by the RBI-appointed administrator Prashant Kumar, an ex-chief financial officer of SBI.