Directions: The question given below consists of a statement followed by a question. You must read the statement carefully and choose the correct answer from the alternatives given below on the basis of your critical reasoning.
Statement: Yes Bank, India’s fifth largest private sector lender, is in the middle of a crisis as the Reserve Bank of India (RBI) has taken over its affairs and placed strict limits on its operations, and is also devising a rescue plan for the bank.
What could be the probable reason for the interference of the RBI in the administration of Yes Bank?
1
The RBI has selected State Bank of India (SBI), the nation's largest lender, to lead a consortium that will inject new capital into Yes Bank.
2
It is likely that the current management of Yes Bank may also be replaced.
3
RBI has been in constant touch with the bank's management to find ways to strengthen its balance sheet and liquidity.
4
Yes Bank's financial position has been undergoing a steady decline largely due to its inability to raise capital, and also due to serious governance issues and practices in recent years.
5
None of the above