While investors hastened to dump bonds, the sensex plunged as much as 3.8%, one of the biggest declines in Asia, and the rupee weakened to a record low.
The crisis at India’s fourth-largest private lender, Yes Bank, is a reflection of the wider set of problems being faced by India’s banking and financial sector.
The Finance Minister said the crisis-ridden bank was being monitored since 2017 and developments relating to it were being monitored on a day-to-day basis.
Yes Bank should’ve been overseen by a Resolution Authority, depositors shouldn’t have had to face moratorium. Now SBI or LIC shouldn’t be forced to buy it.
Sitharaman says RBI governor has assured her there will be no loss to any depositor and the steps taken are in their interest as well as of the banks and the economy.
RBI Governor Shaktikanta Das said the banking sector 'continues to be sound and safe' and the central bank was ready to effectively deal with the challenge.
Airshows are thrilling spectacles of aviation skill and engineering marvels. But they carry inherent risks as the crew is pushing the aircraft, and themselves, to perform at the edges of the envelope.
While global corporations setting up GCCs in India continue to express confidence in availability of skilled AI engineers, the panel argued that India’s real challenge lies elsewhere.
Wing Commander Namansh Syal is survived by his wife, their 6-year-old daughter and his mother. Back in his native village, relatives and neighbours wait for his remains for last rites.
It is a brilliant, reasonably priced, and mostly homemade aircraft with a stellar safety record; only two crashes in 24 years since its first flight. But its crash is a moment of introspection.
There is a need to review failure in discharge of duties and responsibilities on the part of RBI department of banking supervision when any bank fails. Failure of many banks at regular intervals is a sign of weak supervision and lack of timely action. RBI should be asked to make funds available for meeting the liabilities of current, saving and fixed deposit account holders when any bank folds up like this. Only then RBI will start acting responsibly! Once depositors are sorted, RBI can then handle restructuring, merger, bankruptcy leisurely at its own pace.
Otherwise, government should have a scheme for saving bank and fixed deposit accounts where funds deposited will be fully backed by the government (hence, risk free). The government will set the interest rates (being risk free -rates are expected to be little less than rates offered by commercial banks) and collect the funds. These accounts will be operated by the designated banks just as PPF accounts are operated. This way, individuals will be able to allocate desired portion to completely risk free deposits and remaining to risky deposits (but protected by Deposit Insurance up to 5 lacs). This will also free government of the periodic headache of managing such mess.
There is a need to review failure in discharge of duties and responsibilities on the part of RBI department of banking supervision when any bank fails. Failure of many banks at regular intervals is a sign of weak supervision and lack of timely action. RBI should be asked to make funds available for meeting the liabilities of current, saving and fixed deposit account holders when any bank folds up like this. Only then RBI will start acting responsibly! Once depositors are sorted, RBI can then handle restructuring, merger, bankruptcy leisurely at its own pace.
Otherwise, government should have a scheme for saving bank and fixed deposit accounts where funds deposited will be fully backed by the government (hence, risk free). The government will set the interest rates (being risk free -rates are expected to be little less than rates offered by commercial banks) and collect the funds. These accounts will be operated by the designated banks just as PPF accounts are operated. This way, individuals will be able to allocate desired portion to completely risk free deposits and remaining to risky deposits (but protected by Deposit Insurance up to 5 lacs). This will also free government of the periodic headache of managing such mess.