RBI Supersedes Yes Bank Board, Caps Withdrawals At Rs 50,000

by GoNews Desk 1 month ago Views 1142
RBI Supersedes Yes Bank Board, Caps Withdrawals At
In a major development, the Reserve Bank of India (RBI) has dissolved the Board of Directors of the embattled Yes Bank and taken over its operations on Thursday. Yes Bank, the country’s fourth largest private bank, had been grappling with a cash crisis. 

The RBI also appointed a new administrator on its behalf and capped the withdrawal limit from one account at Rs 50,000 per month. However, there is a concession in cash withdrawal under some special circumstances.

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This order by the RBI is valid for the next one month and will be applicable till April 3. Along with setting the cash withdrawal limit, the RBI has also imposed several other restrictions on the bank’s transactions. 

The RBI has assured Yes Bank customers that their rights will be fully protected and there is no need for them to panic. However, large crowds of people gathered outside Yes Bank ATMs late on Thursday night, after the cash withdrawal limit from bank accounts was fixed at Rs 50,000.

Meanwhile, the SBI Board has granted in-principle approval for investment in Yes Bank on Thursday. After the approval, both SBI and LIC will jointly acquire 49% shares in Yes Bank.

The financial condition of the Yes Bank, which started operations around 15 years ago, had been poor for a long time now. The bank is short on cash due to numerous NPAs and its debt is also continuously increasing.