RBI supersedes YES Bank board with immediate effect

The Reserve Bank of India (RBI) on March 5 said it is superseding the board of troubled private sector lender YES Bank with immediate effect.

Former State Bank of India CFO Prashant Kumar has been appointed the administrator.

"This has been done to quickly restore depositors' confidence in the bank, including by putting in place a scheme for reconstruction or amalgamation," the RBI said in a statement.

The central bank has also imposed a moratorium on the private lender till April 3, 2020. Withdrawals from the bank have been capped at Rs 50,000 per depositor.

Also Read | YES Bank: Govt caps deposit withdrawal at Rs 50,000

The move by RBI comes nearly six months after it did the same with Mumbai-based Punjab and Maharashtra Cooperative (PMC) Bank.

Also Read: Govt may nudge LIC to play white knight along with SBI

YES Bank has been grappling with mounting bad loans and has been struggling to raise fresh capital.