Modi's ideas have ruined economy: Rahul on Yes Bank crisis

New Delhi (IANS) Even as long queues were witnessed outside several branches of the crisis-hit Yes Bank across the country, former Congress chief Rahul Gandhi hit out at Prime Minister Narendra Modi saying his ideas have destroyed the country's economy.

"No Yes Bank. Modi and his ideas have destroyed India's economy," Rahul Gandhi tweeted with the hashtag of NoBank. His remarks came a day after the Reserve Bank of India superseded the Yes Bank board for 30 days and appointed an administrator, putting a cap of Rs 50,000 on withdrawal by account holders for a month.

The RBI said the bank's board was superseded "owing to serious deterioration in the financial position of the Bank". Former SBI CFO Prashant Kumar was appointed as administrator of Yes Bank.

The Yes Bank has over 1,000 branches and 1,800-plus ATMs around the country which are under severe stress after the crisis erupted last night.

Former Finance Minister and senior Congress leader P. Chidambaram also slammed the Modi government over the Yes Bank crisis saying the government's ability to govern and regulate financial institutions stands exposed.

"The BJP has been in power for six years. Their ability to govern and regulate financial institutions stands exposed. First, it was PMC Bank. Now it is Yes Bank. Is the government concerned at all? Can it shirk its responsibility? Is there a third bank in the line?" Chidambaram said in a series of tweets.

"When overall bank credit during the above period grew by about 10 per cent, how did Yes Bank's loan book grow by about 35 per cent?" Chidambaram questioned in his tweet. "Will the government confirm that the loan book of YES Bank has grown under the BJP's watch as follows: FY2014: Rs 55,000 crore, FY2015: Rs 75,000 crore, FY2016: Rs 98,000 crore, FY2017: Rs 1,32,000 crore, FY2018: Rs 2,03,000 crore and FY2019: Rs 2,41,000 crore," Chidambaram said.

The former Finance Minister also urged the people to read the piece written by former Prime Minister Manmohan Singh's analysis of the current situation in the country.

Chidambaram said, "Manmohan Singh has spoken truth. Will those in power heed his advice?" he tweeted.