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Yes Bank crisis | RBI Governor says depositor money safe, no need to withdraw in panic

The moratorium on Yes Bank was placed on March 5.

March 16, 2020 / 06:38 PM IST

The moratorium on Yes Bank will be lifted on March 18 at 6 pm, Reserve Bank of India (RBI) Governor Shaktikanta Das said. He reassured depositors that their money is safe and that they do no need to withdraw their funds in panic.

A large number of depositors have remained loyal to Yes Bank, Das noted.

On March 5, Yes Bank had been placed under a 30-day moratorium period, placing a Rs 50,000 withdrawal limit on customers. The RBI had superseded the board and appointed an administrator.

The RBI formed a reconstruction scheme to rescue the lender, which has been formally notified. Das called the reconstruction scheme a "credible and sustainable plan".

Also read: Coronavirus pandemic | RBI stands ready to measures needed to counter COVID-19, says RBI Guv

On March 16, Das said the new board will take over on March 26, and the administrator will vacate his position.

"If there is a requirement, RBI will provide liquidity support to Yes Bank," he added.

The RBI Governor added that state governments have been reassured about the health of private lenders.

Moneycontrol News
first published: Mar 16, 2020 04:26 pm