Home Latest Review Yes Bank placed under 'moratorium'; govt caps withdrawals at Rs 50,000, RBI...

Yes Bank placed under ‘moratorium’; govt caps withdrawals at Rs 50,000, RBI says lender lacked

withdrawals at Rs 50,000 in Yes Bank

  • Troubled private sector lender Yes Bank was placed under a ‘moratorium’ on late Thursday, with the government capping depositor withdrawals at Rs 50,000.
  • The actions come hours after sources said the government has approved a plan wherein State Bank of India (SBI) and other financial institutions would bailout Yes Bank.
  • The curbs on Yes Bank come after similar action was taken against fraud-hit cooperative lender PMC Bank in September, where depositors are still in the lurch.

Troubled private sector lender Yes Bank was placed under a “moratorium” late on Thursday, with the Central government capping depositor withdrawals at Rs 50,000 per account for a month and superseding the board with immediate effect.

 Yes Bank placed under moratorium; govt caps withdrawals at Rs 50,000, RBI says lender lacked credible revival plan

The RBI superseded the board of Yes Bank, which has not been able to raise required capital for the last six months. It also appointed former Chief Financial Officer of SBI, Prashant Kumar as the administrator of Yes Bank.

“The Reserve Bank came to the conclusion that in the absence of a credible revival plan, and in public interest and the interest of the bank’s depositors, it had no alternative but to apply to the central government for imposing a moratorium under Section 45 of the Banking Regulation Act, 1949,” the RBI said in a statement late in the evening.

The statement said the bank management had indicated that it was in talks with various investors and they were likely to be successful. The bank was also engaged with a few private equity firms for exploring opportunities to infuse capital.

“These investors did hold discussions with senior officials of the Reserve Bank but for various reasons eventually did not infuse any capital.

Since a bank and market-led revival is a preferred option over a regulatory restructuring, the Reserve Bank made all efforts to facilitate such a process and gave adequate opportunity to the bank’s management to draw up a credible revival plan, which did not materialise,” the statement said.

In the meantime, the bank was facing regular outflow of liquidity, the apex bank said, justifying its actions.

The actions come hours after sources said the government has approved a plan wherein State Bank of India (SBI) and other financial institutions would bailout Yes Bank.

If the plan is implemented, it would be the first major instance in many years where a private sector lender would be bailed out using public money.


LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Sadak 2 Full Movie Download Free 2020 HD

Sadak 2 (2020) 720p WEBRip 835mb Sadak 2 Full Movie Download Free Movie File Information

11 Ordinance-18 Bills … in Modi government’s agenda for the monsoon session

During the monsoon session of Parliament, the Modi government is preparing to pass important bills and ordinances.

Birthday Special: How much has Surabhi Chandna’s look changed from ‘Tarak Mehta’s inverted glasses’ to ‘Naagin 5’

Surabhi Chandna's look TV actress Surabhi Chandna is celebrating her 31st birthday today. Surabhi is...

Watch Dream Girl Full Movie Online in HD and download

DREAM GIRL FULL MOVIE DOWNLOAD STORY: Desperate to discover business, Karam gets a vocation as...

Recent Comments