New Delhi: Amid the Yes Bank crisis, The Reserve Bank of India (RBI) is preparing to offer a special liquidity window for the cash-starved bank to assuage the fears of the depositors, as per a Moneycontrol report. Also Read - Yes Bank Crisis: After 15 Hours of Interrogation, ED Arrests Founder Rana Kapoor Under Money Laundering Charges
“Considering the peculiar circumstances surrounding this case, the RBI is likely to extend a short-term loan or line of credit to Yes Bank of around Rs 8,000-Rs 10,000 crore to reduce panic among depositors and ensure sufficient funds for permitted withdrawals. As it is a special case, the interest component will be lesser and final touches are being given to this plan.” Also Read - Yes Bank: Chidambaram Links Crisis With Note Ban, Raises 5 Questions
On questions being raised about the offer, a source said that though rare, such an act is permissible under Section 17 of the RBI Act. Another source also reiterated that RBI can take this step under exceptional circumstances. Also Read - Yes Bank Crisis: After Raiding His Residence, ED Takes Founder Rana Kapoor in For Questioning
Meanwhile, the Enforcement Directorate (ED) on late Sunday night arrested Yes Bank founder Rana Kapoor under money laundering charges in Mumbai.
The probe agency’s action comes after the Reserve Bank of India (RBI) imposed a moratorium on the capital-starved Yes Bank and capped withdrawals at Rs 50,000 per account till further orders.
The State Bank of India (SBI) on Saturday too reassured the depositors’ of crisis-hit Yes Bank that their money is not at risk at all. Speaking to reporters, SBI Chairman Rajinish Kumar informed that the country’s largest lender has received a plan on Yes Bank restructuring and conducting due diligence.