Govt imposes withdrawal limit of Rs 50,000 for depositors of Yes Bank for a month

The
government has imposed a withdrawal limit of 50,000 rupees for depositors of
beleaguered private lender Yes Bank for one month. An official notification
issued by the finance ministry said that the cap will stay in effect till 3rd
of April. The limit on withdrawal comes with a few exemptions, in cases like
medical emergency, higher education, marriage and unavoidable emergency.

In a
separate release, Reserve Bank of India said that Yes Bank’s board has been
superseded for a period of 30 days owing to serious deterioration in the
financial position of the private lender. Former Chief Financial Officer of SBI
Prashant Kumar has been appointed as administrator for Yes Bank.

RBI has
assured depositors of Yes Bank that that their interest will be fully protected
and there is no need to panic. In terms of the provisions of the Banking
Regulation Act, the Reserve Bank will explore and draw up a scheme in the next
few days for the bank’s reconstruction or amalgamation.

In another
development, SBI Board has given the State Bank of India in-principle approval
to invest in the capital-starved Yes Bank. The announcement came hours after
Yes Bank was placed under a moratorium.