Mumbai: Mumbai RBI puts Yes Bank under moratorium for 30 days – caps withdrawls by depositors by Rs.50,000

Mumbai: Yes Bank, the private sector lender has been confronted with escalating bad loans.

In a fearing development for the customers of YES Bank, the Reserve Bank of India (RBI) has capped withdrawals by depositors at Rs 50,000. The central bank has also superseded the board of YES Bank and appointed Prashant Kumar, former Deputy Managing Director and CFO of State Bank of India, as administrator.

Reportedly, the RBI in a statement on Thursday, said that it is satisfied that “in order to protect the interest of the depositors and in public interest, it is necessary to issue certain directions to Yes Bank”.

“YES Bank… shall not grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment, whether in discharge of its liabilities and obligations, or otherwise enter into any compromise or agreement, or shall transfer or otherwise dispose of any of its properties or assets,” the central bank stated

The central bank has ensured the depositors of YES bank that their interest will be fully protected and there is no need to panic.

“The Reserve Bank will investigate and draw up a scheme in the next few days for the bank’s reconstruction or amalgamation and with the approval of the Central Government, put the same in place well before the period of moratorium of thirty days ends so that the depositors are not put to hardship for a long period of time,” the RBI said.

News Edit by K.V.Raman