The Reserve Bank Of India has now imposed some restrictions in a moratorium on Yes Bank capping the withdrawal for depositors at 50,000 rupees per account for a month. Yes bank has been going through a lot of financial trouble for the last couple of months. The RBI, the government was looking at the situation and Yes Bank very closely followed it. So the RBI has taken the inevitable decision to persuaded the board of Yes Bank. There is going be new management to put and place and also the RBI has said the will be super serious because of the deterioration in the financial health of Yes Bank. There were governance issues, there were issues of getting new investors did not get for a period of one month.
If you are somebody who has an account in Yes Bank, you would not be allowed to withdraw more than 50 thousand rupees for the next month. RBI has laid out the path very clearly in their meetings. SBI’s will be picking up it’s take in Yes Bank for so long in LIC as well. They will be taking the new in charge will be Prashant Kumar who had been a part of SBI. Prashant Kumar appointed as the administrator of Yes Bank. Yes Bank has not been able to raise the required capital from the last six months.
With government, RBI comes to the conclusion that in favor of public interest and the interest of the bank’s depositors to apply to the Central Government for imposing a moratorium under Section 45 of the Banking Regulation Act, 1949. It comes to hear that Yes Bank also dealing with some private firms for increasing opportunities to infuse capital. The statement comes out from the sources said that the government would agree on a plan wherein the State Bank of India and other banks would bailout Yes Bank. If this is going to happen, then it is the first major instance in the history of the banking sector where a private banking sector would be bailed out using public money.
The Reserve Bank of India gives an assurance to depositors of the bank that their capital and interest will be fully protected and safe and there is no need to taking stress. As per the Banking Regulation Act, RBI will be doing the research and pass the scheme in the next few days with the approval of the Central Government. The things will be laid down to their place well before the period of a moratorium of thirty days. So the depositors don’t have to wait for a long period of time.
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