Yes Bank Limited is an Indian Private Sector Bank headquartered in Mumbai. It offers wide range of banking and financial products for corporate and retail customers through retail banking and asset management services.On 5 March 2020 in an attempt to avoid the collapse of the bank, which had an excessive amount of bad loans, the Reserve Bank of India (RBI) took control of it. RBI later reconstructed the board and named Prashant Kumar,former Chief financial officer of SBI, as new MD & CEO at Yes Bank.
After Yes Bank was placed under moratorium, digital payments were impacted. [1], one of the country's largest digital payment platforms, is dependent on Yes Bank to process its transactions and could not operate. Other fintech operators who rely on Yes Bank to settle their transactions are also down.
The crisis at the bank began in 2018 and grew gradually. In September that year, the RBI reduced [2]'s new three year term as CEO until January 31, 2019. The next day, the YES Bank stock tanked 30 per cent and continued its downward spiral. In October, the RBI refused [2] more time and asked the promoters of the bank to find a new CEO. All this led to poor quarterly results and the bank's asset quality deteriorated.
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. This is the first time that a bank of this size will be put under a moratorium by the RBI. For the next month, YES Bank will be led by the RBI-appointed administrator Prashant Kumar, an ex-chief financial officer of SBI. On March 6, the RBI released its "draft" revival plan for Yes Bank. Yes Bank is now owned by [3] who has a 30% stake in the company as of 28 July 2020.
1. Which of the following digital payment platforms is impacted by the Yes Bank crisis redacted with [1] in the passage above?
(a) GooglePay
(b) PhonePe
(c) PayZapp
(d) Mobikwik
2. Who is the one of the Co-founder of the Yes Bank whose name has been redacted with [2] in the passage above?
(a) Rana Kapoor
(b) Sandeep Bakhshi
(c) Amitabh Chaudhry
(d) Shri Shyam Srinivasan
3. What has been redacted with [3] in the passage above?
(a) HDFC Bank
(b) ICICI Bank
(c) Bank of Baroda
(d) State Bank of India
4. Who was the co-founder of YES Bank along with [1] mentioned above?
(a) K V Kamath
(b) Arundhati Bhattacharya
(c) P Chidambaram
(d) Ashok Kapur
5. Which of the following is not the function of the RBI?
(a) Banker’s bank
(b) Controller of Credit
(c) Custodian of Foreign Exchange Reserve
(d) Allotting money directly to farmers for agricultural development
Correct Answers :
1. B
2. A
3. D
4. D
5. D
