On Friday, former finance minister P Chidambaram termed the Yes Bank crisis as a completely “regulatory failure,” and said there is no need to panic as the Reserve Bank of India (RBI) placed restrictions on the bank. Mr Chidambaram was interacting with the media persons in New Delhi, “It shows completely regulatory failure and I wonder if this is the end or there will be more in the line. Yet the government keeps absolute silence. PMC bank depositors are agitating every day before RBI offices in Mumbai. But the government did not respond.”
“Let’s see what depositors of Yes Bank do. I think they are as worried as depositors of PMC Bank. Let’s see what unfolds now. Obviously, there is no need to panic,” he added.
Mr Chidambaram had earlier tweeted, “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?”
On Thursday, the RBI revealed that a “moratorium” has been imposed on Yes Bank stressing that the bank’s financial capability has undergone a steady decline largely as the bank failed to raise capital. On Thursday the central government took some essential steps to deal with the critical financial condition of the bank. Yes Bank share price has declined to Rs. 16.20.
Union Finance Minister Nirmala Sithraman assured people on Friday saying their money is safe. “I want to assure all the depositors that their money is safe, I am constantly in touch with the Reserve Bank of India (RBI). The steps that are taken are in the interest of the depositors, the bank & the economy.”