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.
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"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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