Stark regulatory approach: Bailout for YES Bank; nothing for PMC Bank

It is tough if you are a PMC Bank depositor to be made aware now that you are not mainstream enough

The urgency with which a bail-out package for YES Bank was readied is in sharp contrast to the authorities’ response to the blowout at the Punjab and Maharashtra Urban Co-operative Bank (PMC Bank).

The Reserve Bank of India’s (RBI) freeze on YES Bank was only for thirty days; the entire regulatory apparatus worked overtime to breathe fresh life into it at taxpayers’ expense. PMC Bank has been in quarantine from September 2019 onwards, and you have no game plan as yet — in public domain that is.

Last week, the central bank said that unlike in the case of commercial banks, it has