Yes Bank depositors money safe; RBI working on early resolution: FM

Putting to rest the speculation surrounding the fate of the cash-starved Yes Bank, Finance Minister Nirmala Sitharaman on Friday (March 6) assured 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.

Union Finance Minister Nirmala Sitharaman on #YesBank: I want to assure all the depositors that their money is safe, I am constantly in touch with the Reserve Bank of India (RBI). The steps that are taken are in the interest of the depositors, the bank & the economy. pic.twitter.com/t48fmk07vw

— ANI (@ANI) March 6, 2020

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.

The Reserve Bank on Thursday imposed a moratorium on the capital-starved Yes Bank, capping withdrawals at ₹50,000 per account and superseded the board of the private sector lender with immediate effect.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.

Sitharaman insisted the immediate priority to ensure Yes Bank customers are able to withdraw money within Rs 50,000 limit.

Related news: RBI’s rescue plan solace for Yes Bank, but comes a bit late

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 “in-principle” approval to invest in the capital-starved Yes Bank.

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.

(With inputs from agencies.)