New Delhi: A day after the RBI imposed moratorium on Yes Bank, Union Finance Minister Nirmala Sitharaman on Friday assured panicked depositors of the PSB that their money was safe and the steps being taken were in the interest of the depositors, the bank and the economy. Also Read - Yes Bank Crisis: List of Exemptions Under Which Withdrawal More Than Rs 50,000 Allowed
“The RBI Governor has assured me that the matter will be resolved soon. Both RBI and government are looking at this. I’ve personally monitored the situation for a couple of months along with RBI and we have taken the course that will be in everybody’s interest”, the Finance Minister told reporters. Also Read - Yes Bank Updates: Remember United Western Bank? Finance Minister Slams Congress For 'No Bank' Swipe
Yesterday, the RBI said a moratorium has been imposed on Yes Bank, stressing that the bank’s financial capability has undergone a steady decline largely due to inability of the bank to raise capital. Also Read - Yes Bank Moratorium Hits PhonePe, BharatPe Services, UPI Transactions Suffer Outage
During the period of moratorium, the Yes Bank Ltd will not, without the permission in writing of the Reserve Bank of India, make in the aggregate, payment to a depositor of a sum exceeding Rs 50,000 lying to his credit in any savings, current or any other deposit account.
The move by RBI comes nearly six months after it did the same with Mumbai-based Punjab and Maharashtra Cooperative (PMC) Bank.
Earlier in the day, RBI governor had said that there will be a swift action from the central bank to put in place a scheme to revive Yes Bank.
“The 30 days which we have given is the outer limit. You will see very swift action from the RBI to put in place a scheme to revive. A market-based resolution of the problem, a bank-laid, investor- laid resolution of the problem is always preferable,” he said.
“You have to give time to the bank and management to take the steps. The RBI intervened when we found it was not working out,” Das said.
Chief Economic Advisor Krishnamurthy Subramanian also said that there is no need for depositors to panic. “I want to assure all depositors that their funds will remain safe, and there is no need to panic,” he told reporters.
(With agency inputs)