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Yes Bank crisis: Deposits won't be affected, withdrawal cap temporary, says Nirmala Sitharaman

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New Delhi, Mar 06: A day after the Reserve Bank of India (RBI) imposed a moratorium on debt-ridden Yes Bank, finance minister Nirmala Sitharaman said that the crisis in Yes Bank is not something which has cropped up suddenly.

"We had been keeping an eye on the bank since 2017," Finance Minister Nirmala Sitharaman said at a press briefing on Friday evening.

Yes Bank crisis: Deposits wont be affected, withdrawal cap temporary, says Nirmala Sitharaman

She said that the RBI recommended after a thorough scrutiny in 2018 that the current leadership (MD and CEO) of Yes Bank cannot continue. "A new CEO was appointed in September 2018 as a result. Cleaning up of bank started since then," said Sitharaman adding that Rs 1 crore was levied as fine on the bank.

Your money safe: Nirmala Sithraman assures Yes Bank depositors

"Sebi also started investigation from September 2019 on insider trading related matter," said the finance minister.

She also said that the RBI has taken certain steps to contain the crisis and protect the interests of the depositors.'

"Among them, the central bank was put under moratorium, withdrawal limit was capped, a new administrator was brought in by superseding the management, and a scheme prepared by the RBI to restructure the bank," said Sitharaman.

She also said,''SBI has expressed a willingness to invest in Yes Bank. Deposits and liabilities will remain unaffected, will be honoured. Yes Bank jobs and salary is assured at least for 1 year.''

RBI defends Yes Bank moratorium, sets deadline of 30 days

Earlier, the RBI unveiled a 'scheme of reconstruction' for the crisis-ridden Yes Bank, a day after the central bank imposed a moratorium on the capital-starved bank, capping withdrawals at Rs 50,000 per account for a month.

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