YES BANK FAILURE
Yes Bank failure is not something which
is quite normal. Failure of a bank has serious repercussions on the economy as
a whole.
There could be many reasons of such
failure like Corporate Governance issues, mismanagement of liquidity, etc.
but the most crucial reason of Yes Bank failure is ‘giving loan’ to [1]stressed
companies such as Anil Ambani Group, DHFL, IL&FS, and Vodafone are some of
such stressed companies. If Yes Bank would have become No
Bank to such stressed corporates then such situation would not have
been there.
You will be surprised to know that this
has not happened all of sudden but our muted RBI witnessing baffled position of
Yes Bank since last 3 years and assuring recovery of the bank.
Now there is a news in the market that
LIC and SBI will [2]buy shareholding of Yes Bank ,or
Yes Bank could be merged with SBI to save it from sinking.
This situation literally creates panic
situation amongst depositors and account holders of Yes Bank because as per recent
[3]RBI
Directive issued on Thursday, depositors can now pull out a maximum of
Rs 50,000 per head even if an individual has more than one account. But this
does not mean that your rest of the amount is not safe. It is just a [4]moratorium
imposed on Yes Bank u/s 45 of the Banking Regulation Act, 1949 to come up with restricting
plan.
The Reserve Bank assures the depositors
of the bank that their interest will be fully protected and there is no need to
panic. The Reserve Bank will explore and draw up a scheme in the next few days
for the bank’s reconstruction or amalgamation and with the approval of the
Central Government, put the same in place well before the period of moratorium
of thirty days ends so that the depositors are not put to hardship for a long
period of time.
It's really a drastic failure of Govt. In India actually there is no safety and security oof investors in any field . RBI is literally blind o. Such matters.
ReplyDeleteGovt has already sensed such trend that's why govt is in process to bring FRDI Bill which is against the depositors
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