The economies around the world are facing a huge crisis due to the spread of an
epidemic called Coronavirus, a huge crisis that has broken indian economy’s back
further came into light on 5th March. It was the news of Yes Bank being placed under a
moratorium.

While the news was shocking Indian Government made maximum efforts
to ensure that people do not panic. As soon as the news broke out, Nirmala Sitharaman
without making a delay released a statement in the press ensuring that depositor’s
money was safe and Reserve Bank of India was making all efforts to bring solutions.
Daily updates have been coming since and the government also ruled on multiple new
rules that might change banking sector after 31st march. The biggest change that is
going to come up is a compulsory disclosure of NPA. NPAs refer to Non-Performing
Asset, if for a period of more than 90 days, the interest or installment amount is overdue
then that loan account would be termed as a Non-Performing Asset. Thus stakeholders
would be seeing huge increases in liabilities which would be transferred from the
columns of “stressed asset”. In the short term this change is going to affect the market
like a huge setback and leave the market in a huge chaos,in the longer run it will keep
the interests of investors, depositors and banks as primary. Yes Bank was the bank with
4th largest NPA with State Bank of India is number one bank with ₹2.01 trillion and
Punjab National Bank with ₹552 billion. While in a recent history the likes of Vijay
Mallya, Nirav Modi has robbed India and settled in other countries, these changes are
going to tighten the grip and prevent any such incidents from happening again. At this
moment the primary thing the depositors should do is look out for their banks and look
into the reports by them. Next few upcoming days will define the future of indian banking
sector. What would be more incredible to look out is how Nirmala Sitharaman and
Reserve Bank plan to facilitate the proceedings