Mumbai, March 6: Hours after the Union Finance Minister Nirmala Sitharaman said that both the Centre and Reserve Bank have noticed governance issues, the Enforcement Directorate (ED) on Friday registered a case against the private bank founder Rana Kapoor under the Prevention of Money Laundering Act. The following development arrived after the ED conducted raid at his Mumbai residence. Though the sources claimed that the case was registered by ED against Kapoor in connection with an old DFHL case.

According to the latest information, reported by news agency ANI, the apex central probing agency registered a case against YES Bank founder Rana Kapoor under Prevention of Money Laundering Act (PMLA). Earlier, ED conducted a raid at his Mumbai office. YES Bank Crisis: FM Nirmala Sitharaman Says 'Centre, RBI Monitoring Private Lender Since 2017'; Asks RBI to Probe Matter.

Here's the ANI tweet:

Briefing a press conference, FM Sitharaman had said, "Since 2017, RBI has been continuously monitoring & scrutinizing Yes Bank. It noticed that there were governance issues and weak compliance in the bank. There was a wrong asset classification together with risky credit decisions."

She had also said that RBI has been given the charge to probe the matter, she said, "Have asked RBI to assess what caused these difficulties for YES Bank and to identify role played by various individuals in the problem." Accusing the YES Bank of involved in governance issues and weak compliance, FM said that the issue would be resolved soon. Meanwhile, Sitharaman assured teh YES Bank account holders that there money is safe.

Stating more, she said that SEBI had noticed malpractices by top executives in March 2019. Sitharaman said, "YES Bank lent money to some of the very stressed corporations like Anil Ambani Group, Essel, Dewan Housing Finance Corporation (DHFL), Infrastructure Leasing & Financial Services Limited (IL&FS), and Vodafone."

Sitharaman informed that RBI had put in a scheme for restructuring of YES Bank, though which it is expected to fully come into play within 30 days so that depositors are not troubled for too long. Apart from the following development, Sitharaman said that geniune attempts are being made to equity infusion into YES Bank but it did not materialise, though State Bank of India has expressed willingness to invest in the cash-crunched bank.

Earlier on Thursday evening, Reserve Bank of India put YES Bank under a moratorium and capped deposit withdrawals at Rs 50,000 per account for a month for customers. Following this, panic grew among the depositors in the fifth largest private sector bank, who complained that neither the ATMs, net banking or mobile banking was working.

(The above story first appeared on LatestLY on Mar 06, 2020 11:24 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).