Yes Bank crisis: Latest developments

NEW DELHI: Rana Kapoor, the founder of crisis-ridden Yes Bank, was arrested by the ED on Sunday under money-laundering charges after over 20 hours of questioning and remanded in its custody till March 11. The RBI had on Thursday imposed a moratorium on Yes Bank, capping withdrawals at Rs 50,000 per account.
Here are the latest developments:
CBI books Rana Kapoor,Kapil Wadhawan for cheating and corruption
The CBI has booked Yes Bank co-founder Rana Kapoor, DoIT Urban Ventures, a company allegedly held by his family members, and DHFL promoter -director Kapil Wadhawan for alleged criminal conspiracy, cheating and corruption, sources said on Sunday.
According to the CBI FIR, the scam started taking shape between April to June, 2018 when Yes Bank invested Rs 3,700 crore in short-term debentures of the scam-hit Dewan Housing Finance Corporation Ltd (DHFL).
In return, Wadhawan allegedly “paid kickback of Rs 600 crore” to Kapoor and family members in the form of loan to DoIT Urban Ventures (India) Pvt Ltd, they said. DoIT Urban Ventures is held by Kapoor’s daughters – Roshini, Radha and Rakhee.
ED stops Rana Kapoor’s daughter Roshni from taking flight to UK
The Enforcement Directorate on Sunday stopped Yes Bank founder Rana Kapoor’s daughter from taking a flight to London as she is required to join the probe in a money laundering case against her father, officials said.
They said Roshni Kapoor was disallowed to board the flight from Mumbai airport on the basis of a Look Out Circular (LoC) issued against her by the central agency.
She was to take a flight to London, the officials said. The reasons for her travel were not known immediately.
She, along with her two sisters and mother, has been stated to be the promoter of certain firms that are under the agency’s scanner.
Digital transaction traffic bounces back on PhonePe
Digital payments platform PhonePe on Sunday said its transactions and user traffic have bounced back to normal, after being affected for 24 hours due to restrictions on Yes Bank.
Over 25 million customers used the PhonePe app on Saturday showing their trust in the platform, according to a statement by the company.
The digital payments platform has bounced back hard in the past 24 hours. The platform processed over Rs 4,000 crore worth of transactions in 24 hours and saw its largest-ever volume of user traffic in a single day (with over 70 million app sessions), it said.
PhonePe saw a service outage for nearly 24 hours, which started immediately after the RBI placed Yes Bank on moratorium on March 5.
Yes Bank crisis leaves travellers, students using forex cards in the lurch
Yes Bank being put under moratorium has put foreign travellers and students who used its prepaid forex cards in the lurch, with no transactions going through for the past three days.
Following the bank being put under moratorium and the restrictions thereof, the lender was unable to play its role to let UPI payments happen for popular apps like PhonePe which depended exclusively on the bank. The app was forced to switch to rival ICICI Bank within a day to restart transactions.
RBI reiterates depositors’ money safe in banks
Allaying concerns raised by many after Yes Bank fiasco, the Reserve Bank on Sunday reiterated that depositors’ money is safe and it is closely monitoring all banks.
The RBI further said that concerns about the safety of deposits in banks are based on a flawed analysis.
“Concern has been raised in certain sections of media about safety of deposits of certain banks. This concern is based on analysis which is flawed. Solvency of banks is internationally based on Capital to Risk Weighted Assets (CRAR) and not on market cap,” the central bank said in a tweet.
BJP, Cong slam each other over Yes Bank crisis
A war of words broke out between the BJP and Congress on Sunday over the Yes Bank crisis with the ruling party seeking to link it with the Gandhi family, while the opposition wondered if the Prime Minister and finance minister were “complicit” as the bank’s loan book grew manifold.
Posting on Twitter a clip of a news channel report that Rana Kapoor had bought a painting from Congress leader Priyanka Gandhi Vadra, BJP’s information and technology wing in-charge Amit Malviya alleged that every financial crime in India has “deep links” with the Gandhis.
Rubbishing the allegation, Congress spokesperson Abhishek Manu Singhvi said it was a “diversionary” tactic by the government.
Indiabulls Housing says Yes Bank owes it Rs 662 cr in form of bonds
Indiabulls Housing Finance said Yes Bank owes Rs 662 crore in the form of bonds to the company and it has no term loans outstanding from the lender.
“We wish to inform that Yes Bank owes to Indiabulls Housing Finance Rs 662 crore via additional tier 1 (AT-1) bonds,” it said in a regulatory filing.
The investments in AT-1 bonds of Yes Bank were made in 2017, as part of its treasury management of over Rs 20,000 crore of cash and when the bank was worth over USD 10 billion in value, it said.
ED arrests Yes Rana Kapoor under PMLA
The Enforcement Directorate arrested Yes Bank founder Rana Kapoor under money laundering charges in Mumbai in the early hours of Sunday, officials said.
The banker was held under the provision of the Prevention of Money Laundering Act (PMLA) around 3 am as he was allegedly not cooperating in the probe, they said.
Kapoor’s arrest at the ED office in Ballard Estate followed over 20 hours of questioning by the central agency after it raided his residence on Friday night.
Later, Kapoor was handed over to the Enforcement Directorate till March 11 by Mumbai’s Special Holiday Court.
While making a request for five-day custody of Kapoor, the ED made a “verbal submission” to the court detailing the alleged financial irregularities of Yes Bank and DHFL.
Yes Bank debit cards can be used at other banks also
Yes Bank announced late Saturday that its debit cards can be used for withdrawing cash at other bank ATMs also.
The move comes after long queues were seen at Yes Bank ATMs and branches and numerous complaints by customers that they were not being able to withdraw any money.
“You can now make withdrawals using your YES BANK Debit Card both at YES BANK and other bank ATMs. Thanks for your patience,” the bank said on Twitter.
Earlier, the government had announced a moratorium that only up to Rs 50,000 can be withdrawn.
Moratorium on Yes Bank
The Reserve Bank of India had on Thursday imposed a moratorium on Yes Bank, capping withdrawals at Rs 50,000 per account, and superseded the board of the private sector lender with immediate effect.
Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.
As per the RBI’s draft reconstruction scheme, State Bank of India will pick up 49 per cent stake in Yes Bank under a government-approved bailout plan.
(With agency inputs)

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