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Yes Bank crisis: Depositors' money is safe, says FM Nirmala Sitharaman

Yes Bank crisis: Depositors' money is safe, says FM Nirmala Sitharaman

| @indiablooms | 06 Mar 2020, 10:33 am

New Delhi/IBNS: Reacting to the Yes Bank crisis, Union Finance Minister Nirmala Sitharaman on Friday assured all depositors that their money was safe, media reports said.

Sitharaman said, "The RBI 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 moneies are safe. I'm constantly in contact with the RBI and the steps that are taken are taken in the interest of depositors, bank and economy. We are fully of ceased of the development."

In a major crisis for Yes Bank, the government on Thursday imposed a withdrawal limit of Rs 50,000 for depositors of the beleaguered private bank. 

A notification, issued by the finance ministry on Thursday evening, said the limit will stay in effect till Apr 3, 2020.

The restriction has been imposed as a part of an order of moratorium issued by the government which also stayed the "commencement or continuance of all actions and proceedings" against the bank.

However, the limit will have few exemptions likes in cases of medical emergency, higher education, marriage and unavoidable emergency, the notification mentioned. 

Meanwhile, the bank's board has been superseded for a period of 30 days "owing to serious deterioration in the financial position of the Bank", the RBI had said in a separate statement.

Former SBI CFO Prashant Kumar has been appointed as administrator for Yes Bank.

Yes Bank is facing a major crisis to raise capital to sustain its operations, after being hit by bad debt. 

The government faced criticism over the Yes Bank crisis from the Opposition with Congress MP Rahul Gandhi blaming the Narendra Modi government, which runs the Centre, for the crisis in the banking sector.

Gandhi tweeted, "No Yes Bank. Modi and his ideas have destroyed India’s economy."

Reserve Bank of India (RBI) governor Shaktikanta Das on Friday said the crisis-hit Yes Bank will be revived by the country's central bank very "swiftly" and "fast".

Addressing media a day after reports claimed the State Bank Of India (SBI) and Life Insurance Corporation (LIC) are likely to buy 49 per cent stake in Yes Bank, Das said, "Swift action will be taken to revive Yes Bank."

"It will be done very swiftly and fast. We have given 30 days as the outer limit," he said. 

Meanwhile, Yes Bank's shares dipped by 85 per cent on Friday.

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