Yes Bank Crisis: No Rahul Baba, It’s Cong That Destroyed India’s Economy
Referring to the moratorium placed on Yes Bank, Congress leader Rahul Gandhi flayed Prime Minister Narendra Modi and his ideas for destroying India’s economy.
Yet another Congress leader, P Chidambaram also criticised the government, saying its ability to govern and regulate financial institutions stands exposed.
The Lutyens media too were not far behind holding Modi responsible for the present crisis in the bank.
But, the truth is, it’s the sin of Congress, whose policies resulted in banks piling up massive non-performing assets.
In 60 years, Indian banks had given Rs 18 lakh crore as loans, but during 2008-2014, it increased to Rs 52 lakh crore.
Banks were forced to lend loans to those industrialists, who were close to a particular family, during UPA-1. A single phone call from 10 Janpath would ensure these people get loans. Once they received the loans and failed to repay, they got fresh loans to repay the previous loans. This circle went on and on, resulting in NPAs piling up.
This continued during UPA-2 as well. They gave loans to willful defaulters like Vijay Mallya and Nirav Modi, from whom repayment was least expected.
There was something more to it. The UPA lied to the nation by hiding the real NPA figures, which amounted to Rs 10,000 lakh crore and claimed a lesser amount of Rs 2 lakh crore. It did this, just to continue lending to their cronies.
On the contrary, the Modi government took concrete steps to solve the issue and strengthen the banking system.
One such step also was taken today. It superseded Yes Bank board for failing to raise funds for its operations. The bank was hit by serious governance issues and practices, including under-reporting NPAs to the tune of Rs 3,277 crore in 2018-19.
Not only this, the government and the RBI gave opportunities for the bank to find ways to strengthen its balance sheet and liquidity, but it could failed to get a concrete proposal from investors needed for it to survive and grow.
Amidst this crisis, the Lutyens brigade are indulging in fearmonegring, misleading the people, whose money is with the bank.
RBI, however, said there was no reason for panic and soon a solution will be worked out.
The moratorium has been imposed for a month.
The RBI capped per day deposit withdrawal limit at Rs 50,000.
Any withdrawal over the amount will need RBI nod. However, one can withdraw a higher amount of up to Rs 5 lakh for medical emergencies, payment towards higher education or for marriage.
RBI also said there was no reason for panic and soon a solution will be worked out.