Yes bank like any other bank always was on the front foot in lending loans. During the year 2014-2017 the disbursed a huge amount of loans which weren’t repaid by the borrowers in the manner that had to be prescribed. After all the mishap and changing the percentage of loan overdue shooting more than any other bank as well as the credit-deposit ratio being over 100% which explained that the loans are being given more than they are being repaid. In this situation the RBI applied Moratorium on the bank and put a ceiling limit on the amount that can be withdrawn from the bank in a time.
Along with these changes brought by in by RBI the enforcement directorate (ED) after a questioning of around 20 hours arrested Rana Kapoor who is the founder and former managing director of the Yes Bank under the provisions of PREVENTION OF MONEY LAUNDERING ACT. Rana Kapoor is accused of getting huge kickbacks in exchange of sanctioning huge amount of loans taken by large firms and organizations. He is being tried for an amount Rs. 5050 crore. This arrest took place in the night of 8-9 March 2020 and after that on May 23 a special court in Mumbai issued summons for the eight accused in this case where Rana Kapoor along with his family and few members of firms associated with them are being accused of money laundering from various organization. One of such organizations is Dewan Housing Finance Limited. These summons are being issued after a charge sheet was filed against them earlier against all the accused. These accused have been asked to be present in court on 5th June 2020.
The only parties who are on the victim side of this whole situation are the account holders in this bank who’s major transactions are being controlled by it as due to the transactional limit thesed people are now suffering.
