All India Bank Employees' Association
(AIBEA) on Saturday said the Reserve Bank must be held accountable and the
government should start taking all the private sector banks under its fold.
"At the same time, in order to protect the interest of
the depositors and bank's clients, Yes Bank should be immediately brought under
the public sector. One by one private banks, which are being glorified by the
government, are failing. It is high time that the government should take a call
and repeat 1969 - all the private banks should be brought under public
sector," said C H Venkatachalam, General Secretary, AIBEA.
"The
fact that Yes Bank has been ailing with various problems including issues of
divergence, non-disclosures, mounting bad loans, inadequate capital, inability
to augment capital, etc.
"But
the RBI took its own sweet time and after a lot of damage, it has announced the
moratorium creating panic amongst the depositors."
The
bank union said the RBI, being the regulator, cannot be unaware of the
ongoing in Yes Bank.
"If
today, the bank has to be closed down due to mismanagement, the RBI cannot
extricate itself from the responsibility. Every time, the RBI is failing to
take timely steps to prevent such bank debacles. Same thing was observed during
United Western Bank and Global Trust Bank," Venketachalam said.
The
AIBEA said there were repeated audit reports which pointed out glaring lapses
and yet the RBI did no act. Same thing has happened now.
"The
government must make RBI answerable and accountable. It is strange that the RBI
is putting various banks under Prompt Corrective
Action - PCA restrictions. In fact, we feel that the government
should bring the RBI under PCA norms," he added.
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