RBI and the government should have moved faster to rescue troubled lender Yes Bank especially because they were aware of its desperate financial situation. India needs a resolution mechanism to enable regulators to step in before it is too late even while minimising the fallout on depositors and the economy.
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We are facing this situation because it is Rich people who does not care or want rule of law. But they forgot that once you make system like that it will haunt you one-day.
Bailing out private banks with public money will be enabling bad financial practices.
There are so many cooperative banks which are under water all due to political expediency starting socialistic system adopted by indira Gandhi.
My company who is the account holder in Yes Bank . Raised foriegn funding for the business in feb.2020 now how can I take money to another account for business operation .
This is the RBI’s day job. Some / many cooperative banks have strong political linkages, enjoy a certain immunity from regulatory oversight. However, for a major private bank to come so close to the abyss reflects poorly on the RBI and the Department of Financial Services.
RBI& finance dept ought to have been more watchful of the activities and happenings in the Pvt banks as well as Public sector banks and corrective actions have to be in time as public once upon a time used to feel govt banks to be more secure than Pvt banks as govt comes to the rescue of govt banks in crisis.But that feeling gone once govt banks started Loan Melas & writing off loans given as per directives of various govts&ministers in power distributing public money( savings) to consolidate their political bases using/ writing off public savings kept in the govt banks.Then public turned to Pvt banks hoping that common man’s savings wont be used for granting loans to anybody recommended by politicians But now after Global trust bank ,even a good bank like Yes bank too abused the trust reposed by customers and misused public funds to benefit their industrial and business friends least bothering about the recovery score of the concerned.This way in India public slowly loosing faith in good Pvt banks after seeing the mismanagement by the promoters& managing board and even the branded reputed Auditors too not doing proper audit of the accounts and publishing the reports for shareholders knowledge.Thisway in India public are loosing faith even in watchdogs deployed by Govt to prevent all these shadow happenings.Had the watch dogs been properly managed all these happennings could well be noticed and corrective warnings could have been issued in time for public to be careful and distance themselves from such deceptive management’s.Always honest& innocent investors only loose while the real culprits take care of themselves well in advance even at the time of demonetisation also only common man suffered.Even when SEBI was not there some 20 to 30 years back all Fly by Night operators fooled the small investors thro IPOs and disappeared after one or two years by draining public funds into their personal under the nose of Registrar of companies and finance dept of Central govt.This is India where you can’t believe your own Kith and kin too including your own family in financial matters.!!!