Telangana BJP praises Centre and RBI's role in handling Yes Bank crisis

After the Reserve Bank of India imposed a moratorium on Yes Bank, the Telangana BJP on Saturday commended the role of RBI and the Central government for dealing with the ongoing Yes Bank crisis and stated that it has managed to save the depositors' hard-earned money. 

"BJP commends the RBI and Modi government to have come to the rescue of Yes Bank which was at the brink of collapse, especially to protect the monetary interests of lakhs of common citizens who have saved their hard-earned money in this bank as depositors," a Telangana BJP release said.

The release by the Telangana unit of the party also stated that the BJP government has taken up major banking sector reforms since 2013. "Our government is currently at its peak of re-organizing and restructuring the banking sector, keeping in view of the ambitious and achievable target of 5 trillion dollar economy set by PM Modi," the release added.

READ | Chidambaram contradicts RBI guv & SBI chief; advises 'SBI should take over Yes Bank'

Slamming the Congress party, it also said that Congress has no right to criticise the BJP and accused it of "weak corporate governance and unethical business conduct" during its tenure. 

"BJP requests all the depositors of Yes Bank in particular and others in general, not to fall prey to rumors of banking system failure being propagated by irresponsible opposition parties like Congress and other political opponents," the release said.

Discussing the Bank's reconstruction package being on underway, Telangana BJP said, "Yes Bank depositors do not need to worry about their deposits and the temporary moratorium on their transactions and withdrawals. The normalization process will commence within the 30-day outer limit set by the government on RBI recommendation."

READ | Naqvi slams Rahul Gandhi's 'No Yes Bank' remark, says 'worry about your party's growth'

Yes Bank crisis

Yes Bank which has been facing a crisis as it accumulated many bad loans in 2018 by lending to corporate defaulters such as DHFL, Jet Airways and Cafe Coffee day, was put on a moratorium by RBI for 30 days, capping its withdrawals at Rs 50,000. The RBI has also announced ‘Yes Bank Ltd. Reconstruction Scheme, 2020’ altering the authorized capital to Rs 5000 crores and 2400 equity shares standing at Rs 10 each. Moreover, SBI which leads the consortium of banks investing in the 'reconstructed bank' will not reduce its holding below 26% before the completion of three years. Currently, Enforcement Directorate is raiding founder Rana Kapoor's residence after booking a money laundering case. The ED is probing into the loans offered by Yes Bank to DHFL which has been booked for siphoning funds close to Rs 13000 crores allegedly through 80 shell companies.

READ | 'Govt looking after all aspects': Shahnawaz Hussain assures depositors on Yes Bank crisis

READ | 'Cascading effect of Yes Bank crisis on other sectors is worrying': Vinod Kothari

(With inputs from ANI)