Yes Bank update: FinMin in continuous interaction with Reserve Bank
New Delhi, Mar 07: Finance Minister Nirmala Sitharaman assured cash-starved Yes Bank depositors that their money is safe and the RBI is working on an early resolution of the issue.
"I'm in continuous interaction with the Reserve Bank of India (RBI). The central bank is fully seized of the matter and has assured they will give a quick resolution. I want to assure every depositor that their money shall be safe. Their monies are safe," Sitharaman told reporters here.
She
said
the
steps
taken
are
in
the
interest
of
depositors,
banks
and
the
economy.
"We
are
fully
of
seized
of
the
development.
RBI
governor
has
assured
me
that
there
will
be
no
loss
to
any
depositor,"
she
added.
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The Reserve Bank on Thursday imposed a moratorium on the capital-starved Yes Bank, capping withdrawals at Rs 50,000 per account and superseded the board of the private sector lender with immediate effect.
Yes 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.
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Sitharaman insisted the immediate priority to ensure Yes Bank customers are able to withdraw money within Rs 50,000 limit.
For the next month, Yes Bank will be led by the RBI-appointed administrator Prashant Kumar, an ex-chief financial officer of SBI.
The board of country's largest lender State Bank of India on Thursday gave an "in-principle" approval to invest in the capital-starved Yes Bank.
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Yes Bank has been struggling to execute a capital raising plan for the last six months. Its core equity tier-I ratio had slipped to 8.7 per cent as of September.
The bank had also delayed its December quarter results.