Nirmala Sitharaman
Nirmala Sitharaman
PTI Photo

Addressing a press conference in relation to the recent Yes Bank crisis, Finance Minister Nirmala Sitharaman on Friday said that the Narendra Modi-led government is committed to ensuring that the depositors' interests are safeguarded.

Sitharaman on Friday said the government has asked the Reserve Bank of India (RBI) to look into what went wrong at Yes Bank and fix individual responsibilities. "I have asked RBI to ago into assessing 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 said.

The Finance Minister said that the central bank had noticed governance issues and weak regulatory compliance at Yes Bank since 2017. She added that the investigative agencies, Securities and Exchange Board of India (SEBI) had noticed malpractices by top executives of the bank in March 2019.

Sitharaman said that the government wants the Reserve Bank to ensure that due process of law is followed with a sense of urgency. She added that the State Bank of India (SBI) has expressed willingness to invest in Yes Bank.

The Finance Minister also said that the deposits, liabilities will not be affected, adding that the employment and salary of Yes Bank employees has been assured for one year.

She said that YesBank 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.

Earlier, on Thursday evening, the RBI imposed a moratorium on Yes Bank, restricted withdrawals at Rs 50,000 per account and superseded the board of the private sector lender with immediate effect. Following which the bank won't be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.

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