Yes Bank Crisis: Yes Bank founder and former CEO Rana Kapoor has been arrested by the Enforcement Directorate team. Rana Kapoor was arrested at four in the morning after a 31-hour marathon inquiry. After the arrest, Rana Kapoor will be presented in the Prevention of Money Laundering Act Court i.e. PMLA Court this morning. Earlier on Saturday, the ED also raided some other places in Delhi and Mumbai.
— ANI (@ANI) March 7, 2020Advertisement
Kapoor was brought to the ED’s office in Ballard Estate on Saturday afternoon. A lookout notice has also been issued against Rana Kapoor, which means he can no longer run away from the country. After the arrest of Rana Kapoor, some other big officers of Yes Bank are sure to fall.
Rana Kapoor is alleged to have been benefited in the account of Kapoor’s wife in exchange for a loan to the DHFL company. During this, there are allegations of financial irregularities. In 2017, Yes Bank put an amount of Rs 6,355 crore into a bad loan.
— ANI (@ANI) March 8, 2020
To support Yes Bank trapped in the financial crisis, SBI has planned to invest in Yes Bank. In this regard, RBI has released the “Draft Reconstruction Scheme” on Friday. In this scheme, SBI will meet the RBI on Monday with the approval of its board. Whether the board approves anything, the entire plan rests on it. But in a way, this plan has been approved by the bank in principle.
What is RBI’s decision on Yes Bank?
In 2019, Yes Bank, with a capital of 3 lakh 80 thousand 826 crores, has a loan of 2 lakh 41 thousand 500 crores. When the bank’s NPA increased, RBI took over the command. The board of directors of the bank has been dissolved for 30 days. An administrator was appointed to oversee the bank. Prashant Kumar, former deputy managing director, and chief financial officer of SBI, is the new administrator of Yes Bank.
The limit of withdrawal of money from the bank of account holders has been fixed at 50 thousand rupees a month. Up to 5 lakh rupees can be withdrawn from the account under special circumstances. Special circumstances mean studies, treatment, and marriage.
Why did RBI have to take such a step?
The RBI has taken steps to improve the financial condition of the bank. The account holders’ money can be saved from drowning. RBI had to come with the help of customers and the bank because the financial condition of Yes Bank started in 2004 was not good.
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