‘Is There a Third Bank in Line,’ P Chidambaram Questions Centre on Yes Bank Crisis

Invoking last year's PMC Bank issue and the current Yes Bank case, the former Union Finance Minister said that the government's ability to govern and regulate financial institutions 'stands exposed' in the wake of the Yes Bank crisis.

Edited By: Karan Manral

Updated: March 6, 2020, 11:50 AM IST

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https://www.india.com/news/india/is-there-a-third-bank-in-line-p-chidambaram-questions-centre-on-yes-bank-crisis-3962467/ Copy

P Chidambaram (File Photo)

New Delhi: Congress leader P Chidambaram on Friday lashed out at the BJP-led Centre over the Yes Bank crisis, remarking that the government’s ability to govern and regulate financial institutions ‘stands exposed’ in the wake of the crisis. He also questioned that after PMC and now Yes Bank, ‘if there is a third bank in the line?’

The Reserve Bank of India (RBI) had, late last night, issued a moratorium, taking over the Yes Bank Board of Directors, with immediate effect, for a month and also imposing a withdrawal limit of Rs 50,000 per account till further orders. The move came after the bank found itself grappling with bad loans, for months.

Today, Chidambaram, a former Union Finance Minister, tweeted: “BJP has been in power for six years. Their ability to govern and regulate financial institutions stands exposed. First, it was the 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?”

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

Last September, the RBI had placed curbs on the activities of the Mumbai-based Punjab and Maharashtra Cooperative (PMC) Bank for six months after it came to light that the bank had allegedly created fictitious accounts to hide over Rs 6,700 crore in loans extended to the almost-bankrupt Housing Development and Infrastructure Limited (HDIL).

The withdrawal limit for PM Bank account holders was initially capped at Rs 1,000, then Rs 25,000, one lakh and finally at the current limit of Rs five lakh.

Earlier today, speaking to media over the Yes Bank issue, RBI governor Shaktikanta Das said that will put in a ‘very swift effort’ to formulate a scheme to revive Yes Bank.