Our govt is committed to ensuring that depositors' interests are safeguarded: Nirmala Sitharaman on Yes Bank crisis

"I have asked RBI to act so that the due process of law takes its course with a sense of urgency," she said while addressing a press conference.

"Our govt is committed to ensuring that depositors' interests are safeguarded," she said.

She said the SBI has expressed willingness to invest in Yes Bank 

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Meanwhile, the bank's board has been superseded for a period of 30 days "owing to serious deterioration in the financial position of the Bank", the RBI had said in a separate statement.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

Meanwhile, Yes Bank Issued a statement to reassure its customer about safety of their money.

Yes Bank on Friday assured its customers that all their money is safe and there was no need to panic.

With reference to the above, the withdrawal limit for depositors has been capped at Rs. 50,000 as an aggregate limit for the entire moratorium period, wherein customers will be allowed to withdraw a total of Rs. 50,000 from their accounts, the bank said in a statement.

Prashant Kumar, Administrator – YES BANK, appointed by the Reserve Bank of India, said, “The current moratorium has been brought into effect keeping the depositors’ interest in mind and towards restoring their confidence.  A solution is being worked upon to revive the Bank well before the moratorium period of thirty days ends. The Bank is also taking necessary steps to ensure seamless transactions for the customers. We assure the depositors that their money is safe and there is absolutely no reason to panic. Look forward to continued support from the depositors” as an advisory to customers."