FM Sitharaman Assures Yes Bank Deposit Safety, Employees To Get Salary At Least For A Year

Finance Minister Nirmala Sitharam briefed the media on Friday on the status of the government and RBI's efforts to rescue Yes Bank. She assured that deposits and liabilities will continue to be unaffected. Employment and salary for employees of Yes Bank were also assured for at least 1 year.

"I am constantly in contact with the RBI and the steps being taken are in the interest of depositors, bank and the economy," she said earlier on Friday.

Sitharaman said that RBI has been continuously monitoring the Yes Bank situation since 2017 and investigative agencies saw malpractices of some executives at the private bank. She also recalled that Rs 1 crore fine was levied on the bank in March 2019. Sitharaman said that SEBI also began its investigation into Yes Bank from September 2019 and it was in the same month that the earlier promoter's stake in the bank was completely sold.

"All this while, genuine attempts were made to get equity into the bank, but nothing materialised," she said adding that in November last year, it was clear there were no hopes for the bank to get any money.

FM added that SBI has expressed interest in Yes Bank.

"After the administrator does his job, a new board will be put in place."

Sitharaman further said that she has asked RBI to find out and assess where the problem lies and clearly identify the role played by individuals in the problem.

"I want the RBI to follow due process of law to find out what led to this magnitude of the problem in Yes bank."