YES Bank Crisis: After PMC Bank, It's YES Bank Now, Which Is Next? Asks Chidambaram

Reserve Bank of India (RBI) Governor Shaktikanta Das today said “the 30 days which we have given is the outer limit, you will see very swift action from the RBI to put in place a scheme to revive Yes Bank.”

P Chidambaram

New Delhi: Former Finance Minister and Congress leader P Chidambaram flayed the government for its inability to govern and regulate financial institutions. His statement came after Yes Bank was placed under a moratorium, with the RBI capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board. Chidambaram said it was a total regulatory failure and wondered it was there were more banks in line. “It shows complete regulatory failure. I wonder if this is the end or will there be more in the line. Yet govt keeps absolutely silent. Let's see what depositors of #YesBank do,I think they are as worried as depositors of PMC Bank. Let's see what unfolds now ,”he told reporters at the Parliament this morning.

Congress leader Rahul Gandhi also lapped up the opportunity to slam the Modi government for "destroying" the Indian economy.

The shares of private lender Yes Bank fell to the lowest in a decade to at least 70% on Friday. Moody's on Yes Bank had said that RBI's moratorium on Yes Bank is credit negative as it affects timely repayment of bank depositors and creditors. Reserve Bank of India (RBI) Governor Shaktikanta Das today said “the 30 days which we have given is the outer limit, you will see very swift action from the RBI to put in place a scheme to revive Yes Bank.”