Yes Bank Crisis – Causes, Consequences & Measures

Reading Time: 9 mins On 5th March 2020, the Reserve Bank of India (RBI) had imposed a 30-day moratorium on the YES Bank, superseded the bank’s board and appointed Prashant Kumar, who was serving as chief financial officer and deputy managing director at the State Bank of India (SBI) as an administrator. Under the moratorium, deposit withdrawals were capped at Rs.50,000 per person. The apex bank had also proposed a reconstruction plan under which the SBI shall take a maximum of 49% stake in the restructured capital of the bank. The YES Bank crisis is not unique or unprecedented as it came due to the growing number of bad loans caused by the issues faced by the country’s economy, which ranges from real estate to power and NBFCs. Thus, ensuring necessary reforms in the governance, policies, etc., to safeguard the country’s financial sector are a need of the hour.

Disinvestment of Public Sector Units (PSUs) in India – Pros and Cons

Reading Time: 6 mins The government has set a disinvestment target for 2020-2021 to Rs.2.10 lakh crore, having failed to achieve the current fiscal year’s target of Rs.1.05 lakh crore. It hopes to achieve the unmet target of this fiscal year in the next fiscal year. A large part is likely to come from the sale of stakes in Life Insurance Corporation and IDBI bank. However, the strategy of how this target is going to be achieved is absent. Nevertheless, selling off stakes from high return public enterprises like LIC can ensure the achievement of targets set by the government. Achieving this alone is not enough. The government must use these earnings not to pay off its loans or achieve its fiscal deficit target but to reinvest in aspects that ensure improvement in economic growth and sustainable returns.

NPA Crisis in India – Reasons and Responses

Reading Time: 6 mins

According to the Economic Survey 2018-2019, the functioning of the banking sector has improved due to the decrease in the Non-performing assets (NPAs) and an increase in credit growth. The gross NPAs of the public sector banks have declined from 11.5% to 10.1%, between March 2018 and December 2018.

Fugitive Economic Offenders Act 2018 – Why is it Necessary?

Reading Time: 4 mins

Recently, there have been many instances of Enforcement Directorate (ED) filing charge sheet against economic offenders under the Fugitive Economic Offenders Act, 2018. In this scenario, it is essential to understand the need, features, benefits, and concerns regarding the Fugitive Economic Offenders Act, 2018.

This article explains the following in an analytical manner with a mindmap for better understanding and quick revision.

  1. What is the need for Fugitive Economic Offenders Act? (Benefits)
  2. What are the existing laws for seizing Assets?
  3. What are the salient features of Fugitive Economic Offenders Act, 2018?
  4. What are the Challenges in implementing the law?
  5. What is the way forward?