Yes Bank Founder Rana Kapoor Taken to Enforcement Directorate Office For Questioning
The Enforcement Directorate on Saturday took Yes Bank's founder Rana Kapoor to its office in Mumbai for questioning.
Mumbai, March 7: The Enforcement Directorate on Saturday took Yes Bank's founder Rana Kapoor to its office in Mumbai for questioning. The development comes a day after the ED filed a money laundering case and conducted searches at the residence of Rana Kapoor. The banker was briefly questioned on Friday. To prevent him from leaving the country, the agency also issued a lookout circular against Kapoor. SBI to Acquire Up to 49% Stake in Crisis-Hit Yes Bank, Says Chairman Rajnish Kumar.
The ED's action comes a day after the Reserve Bank of India (RBI) superseded the Yes Bank board for 30 days and appointed an administrator, putting a cap of Rs 50,000 on withdrawal by account holders for a month. The RBI said that the bank's board was superseded "owing to serious deterioration in the financial position of the bank". Former SBI CFO Prashant Kumar was appointed as administrator of Yes Bank. YES Bank Crisis: Reserve Bank Caps Withdrawals at Rs 50,000, Appoints Former SBI Chief Financial Officer as Administrator.
A moratorium has been imposed on Yes Bank, under which the bank will not, without the permission in writing of the RBI, make in the aggregate, payment to a depositor of a sum exceeding Rs 50,000 lying to his credit in any savings, current or any other deposit account. The bank has over 1,000 branches and 1,800-plus ATMs across the country which are under severe stress after the crisis erupted last night.
Union Finance Minister Nirmala Sitharaman on Friday said that Yes Bank was put under watch since 2017 and developments relating to it were being monitored on a day-to-day basis. "Since 2017, the central bank noticed governance issues and weak regulatory compliance at Yes Bank, besides wrong asset classification and risky credit decisions," the Finance Minister said.
(The above story first appeared on LatestLY on Mar 07, 2020 01:11 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).