Yes Bank crisis: State govt to deposit its funds only in nationalised banks

In the background of the Yes Bank crisis, the state government has decided to deposit its funds only in nationalised banks and not private ones.

In the background of the Yes Bank crisis, the state government has decided to deposit its funds only in nationalised banks and not private ones.

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Deputy chief minister Ajit Pawar said the decision was taken to secure the funds. “The chief minister has taken a decision and has conveyed it to the chief secretary that all government funds should be deposited in the nationalised banks protected by the central government,” said Pawar.

In the face of the bank’s financial downfall, the Reserve Bank of India (RBI) restricted the withdrawals from Yes Bank to ~ 50,000 for a month on Thursday.

There has already been a controversy over salary accounts of police personnel transferred to Axis Bank. It became a political issue as then chief minister Devendra Fadnavis’s wife Amruta holds a senior position in the bank.Since the start of his tenure, Thackeray has opined that such funds should not be rested with private lenders and should be with Public Sector Undertaking (PSU) banks.

There were also reports of the CM being unhappy with the constant criticism by Amruta against his government on Twitter and this has only hastened his decision.