New Delhi: In a move late Thursday night, the Reserve Bank of India (RBI), placed a mortarium on Yes Bank, superseding its Board of Directors with immediate effect for a period of one month. The move came as a result of what has been described as a ‘decline in the bank’s financial situation.’ Also Read - Yes Bank Updates: Remember United Western Bank? Finance Minister Slams Congress For 'No Bank' Swipe
Additionally, the central bank has also capped deposit withdrawals from Yes Bank at Rs 50,000 per account. However, there are some exemptions under which account holders are liable to withdraw more than Rs 50,000 and up to Rs five lakh, subject to certain conditions/exemptions. Also Read - 'Is There a Third Bank in Line,' P Chidambaram Questions Centre on Yes Bank Crisis
The exemptions are as follows: Also Read - Yes Bank Moratorium Hits PhonePe, BharatPe Services, UPI Transactions Suffer Outage
- To pay for medical treatment
- Covering higher education costs, either in India or abroad
- To pay for ‘obligatory expenses’ for occasions like weddings etc.
- Any other ‘unavoidable emergency’
The first three provisions are applicable to an individual and his/her dependents. The payouts, should one of the aforementioned situations arise, can be made by a general or special order from the RBI.
The Yes Bank crisis, which comes after last September’s Punjab and Maharashtra Cooperative (PMC) Bank in Maharashtra, has triggered a major political fight. While Finance Minister Nirmala Sitharaman and RBI Governor Shakitkanta Das have assured the depositors that their money is safe, the opposition, especially the Congress, has hit out at the government, with leaders like P Chidambaram and Rahul Gandhi criticising the government for the crisis.