Congress leader and Lok Sabha MP Manish Tewari wrote a letter to fellow parliamentarian Jayant Sinha on Saturday, urging him to convene an urgent meeting of the Parliamentary Standing Committee on Finance in the wake of the Yes Bank crisis. Currently, Sinha is the chairperson of this committee. Tewari stated that the imposition of a moratorium on Yes Bank along with the collapse of DHFL and IL&FS was a warning sign for the economy.
Thereafter, he demanded the summoning of officials from RBI, Department of Financial Services and Yes Bank so that the members of the Parliamentary Committee could be briefed about the collapse of India’s fourth-largest private sector bank. He contended that this was not a red herring but a sign of the country’s “collapsing economy”. The Congress MP opined that the future course of action would be deliberated after the committee finished investigating the reasons for the collapse of Yes Bank.
My request to Hon’ble @jayantsinha to kindly convene the Parliamentary Standing Committee of Finance to take stock of the Yes Bank Crisis that has impacted 29 Lakh Depositers at the earliest. pic.twitter.com/S0jGhmazXO— Manish Tewari (@ManishTewari) March 7, 2020
On Thursday, the RBI imposed a moratorium on Yes Bank, superseding its Board of Directors. In the meantime, former Chief Financial Officer of SBI Prashant Kumar has been appointed as its administrator. The withdrawals for customers have been capped at Rs.50,000. However, an exception can be made on the grounds of a medical emergency, higher education costs, marriage expenses, and unavoidable emergency.
The RBI has cited Yes Bank's “inability to raise capital to address potential loan losses” and “serious governance issues” as some of the reasons for taking action. The RBI on Friday unveiled a draft reconstruction scheme of Yes Bank in the public domain. Moreover, the RBI has invited suggestions and comments from the members of the public until March 9, 2020. Once the scheme comes into operation, the RBI-appointed administrator will be replaced by a new Board on which the investor bank will have two nominee directors.