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Despite pending inquiry, “Yes Bank” authorised to collect funds for PMCF

Despite pending inquiry, “Yes Bank” authorised to collect funds for PMCF

Written By: / Monday, 01 June 2020 17:11

IT News
Mumbai, May 31:
While inquiries by the central agencies about financial mismanagement are still on and RBI’s plan to reconstruct the bank yet to take proper shape, the Union Government has authorised “Yes Bank” to collect funds for “The PM CARES Fund”(PMCF).
The PMCF was created on 28 March, in view of the COVID-19 crisis as the prime minister as its chairperson and senior cabinet members serving as trustees. SBI, Bank of Maharashtra and Axis Bank are the other banks authorised to collect donations for the PMCF.
“Yes Bank” receives donations in its account No 000394600001910, Chanakyapuri branch, New Delhi. The donations are also accepted through digital banking channels ..Net Banking and mobile banking via IMPS, RTGS or NEFT.
Soon after it was given responsibility to collect funds for PMCF, Yes Bank CEO and MD Prashant Kumar, on 7 April tweeted that “As we navigate the COVID-19 situation, we pledge to support fellow citizens. We’ve been given an opportunity to serve the nation through a mandate to collect donations for the @PMCares Fund. We urge you to join our pledge & donate to the cause: @PMOIndia”.
On March 14, the bank had reported a record loss of Rs 18,564 crore for the quarter ending December 31, 2020, as against a profit of Rs 1,000 crore in the year-ago quarter. RBI had also imposed a moratorium on withdrawals from the bank. However it was lifted on 19 March,  thereby enabling customers to access full banking services.
But the fact is that, the inquiry by Enforcement Directorate and CBI about irregular investment of Rs 3,700 crore by “Yes Bank” in short-term debentures of the scam-hit Mumbai based Dewan Housing Finance Limited (DHFL) is still on and Yes Banks’ former CEO and co founder Rana Kapoor and DHFL promoters- Dheeraj Wadhawan and Kapil Wadhawan continue to be in ED’s custody and have been denied bail by the Bombay High Court.
On 13 March, 2020 central cabinet approved the reconstruction plan of “Yes Bank”, under which SBI is to invest Rs. 7,250 crore,  HDFC and ICICI, will invest Rs.1000 crore each and  Axis Bank will put in Rs.600 crore. SBI will have to retain a minimum 26% stake in “Yes Bank” for three years.
Vishwas Utagi, former General Secretary Maharashtra State Bank Employees Federation and Vice President All India Bank Employees Association said that the plan of reconstruction of “Yes Bank” is yet to be completed. Most of the times such plans remain merely on paper. Besides the setting up of PMCF itself is erroneous, since we already have PM’s national relief fund.
In the meanwhile in response to an RTI application filed on first April, 2020 by a Harsha Kandukuri, a law student at the Azim Premji University in Bengaluru (Karnataka), seeking information about PMCF’s trust deed and government orders relating to its creation and operation of the fund, on 29 May, 2020 PMO replied that “ PM CARES Fund is not a Public Authority under the ambit of Section 2(h) of the RTI Act, 2005. However, relevant information in respect of PM CARES Fund may be seen on the Website”.

About the Author

Raju Vernekar

Raju Vernekar

Raju Vernekar is a Media Professional based in Mumbai and is a regular contributor of Imphal Times. He had served as Chief Reporter at Free Press Journal (1996 – 2015 ). His Activities includes writing for different news papers, script writing/production for TV channels, Films Division. Writing poems in Marathi, Hindi, English, Guiding mass media students and helping people to solve their problems. Raju may be contacted at [email protected]

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