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In spite of RBI’s warning, Centre invested Rs 250 crore in Yes Bank in 2019-20

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The RBI had first flagged serious lapses in the bank’s governance in 2018.

The Centre invested Rs 250 crore with private lender Yes Bank in the financial year 2019-’20 even though the Reserve Bank of India had deemed the bank as risky in 2018, shows the financial statement of the Prime Minister’s National Relief Fund.

The investment in Yes Bank Fixed Deposit Receipts was made even as Finance Minister Nirmala Sitharaman last year said that the RBI had been monitoring the bank since 2017.

To put the amount in perspective, the investment was more than the Rs 222 crore the government spent in providing relief measures during the financial year 2019-’20, the National Herald reported.

The RBI had first flagged serious lapses in Yes Bank’s governance in 2018. It then repeatedly pulled up the bank for under-reporting its non-performing assets, which stood at 7.4% as of September 2019.

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