Yes Bank resolution will be done swiftly, 30 days is outer limit: RBI
New Delhi, Mar 06: RBI Shaktikanta Das on Friday said that Yes Bank resolution will be done very swiftly and that 30 days is an outer limit, according to news agency PTI.
On late Thursday evening, the central bank put Yes Bank under moratorium and capped withdrawals at Rs 50,000 per account till further orders.
The governor said that the decision was at a "larger level" and not at individual entity level. The move is aimed at ensuring safety of financial system, he added.
Das has assured a swift action from the central bank's end so as to put in place a scheme to revive Yes Bank.
On the timing of the action on Yes Bank, he said there is always debate over RBI acting prematurely or taking too long to act.
"A market-led and bank-led resolution of the problem is always preferable. You have to give time to the bank management to take step and efforts. And the bank did take efforts. When we found that we cannot wait and should not wait any longer, we decided to intervene.
"I think the timing is appropriate. I can assure you that RBI will come out with a scheme very shortly," Das said.
Yes Bank was on Thursday placed under a moratorium, with the RBI capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board.
The bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.
For the next month, Yes Bank will led by the RBI-appointed administrator Prashant Kumar, an ex-chief financial officer of SBI.