Amid the Yes Bank crisis, Odisha's Finance Minister Niranjan Pujari on March 7 urged the central government to issue necessary instructions to the Reserve Bank of India (RBI) to allow the release of deposits relating to Shree Jagannath Temple. According to a letter accessed by Republic, Niranjan Pujari informed Union Finance Minister Nirmala Sitharaman about various funds related to the historic temple that have been currently deposited with Yes Bank in the shape of TDRs. Pujari also urged the finace minister to take necessary action in order to safeguard the interest of millions of devotees of Lord Jagannath.
The letter stated, "Foundation Fund, Corpus Fund, Temple Fund are being managed by Managing Committee, Shree Jagannath Temple Administration (SJTA). Out of these funds, an amount of Rs 545 crores have been deposited with Yes Bank, Puri. These deposits are maturing in the month of March 2020. This is an issue of religious importance for devotees of Lord Jagannath. In this background, I request you to kindly issue necessary instruction to the RBI to allow the release of funds related to SJTA in Yes Bank."
The Reserve Bank of India (RBI) on March 5 said that the financial position of Yes Bank Ltd has undergone a steady decline largely due to the inability of the bank to raise capital to address potential loan losses and resultant downgrades, triggering the invocation of bond covenants by investors, and withdrawal of deposits. The RBI on March 5 had applied to the Central Government for imposing a moratorium under section 45 of the Banking Regulation Act, 1949 and the moratorium was imposed on the very same day.
However, the RBI had assured the depositors that the depositors' interest will be fully protected and there is no need to panic. The Reserve Bank of India on March 6 had placed in the public domain a draft scheme of reconstruction of the Yes Bank Ltd. As per RBI, the State Bank of India has expressed its willingness to make an investment in Yes Bank Ltd. and participate in its reconstruction scheme. Yes Bank founder Rana Kapoor on March 8 was arrested by the Enforcement Directorate in a money laundering case after questioning him for 20 hours.
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Allow Puri Jagannath Temple to withdraw funds from Yes Bank: Odisha FM writes to Sitharaman