New Delhi: Former Congress president Rahul Gandhi has attacked the Narendra Modi-led government after the Reserve Bank of India (RBI) imposed a moratorium on Yes Bank. “No to Yes Bank, Modi and his ideas have destroyed India’s economy”, tweeted the Congress leader. Also Read - After Urging Nation, PM Modi Lights up Lamp to Ramp up Collective Fight Against COVID-19
Earlier on Thursday, Yes Bank was placed under a moratorium, with the RBI capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board. The move by RBI came nearly six months after it did the same with Mumbai based Punjab and Maharashtra Cooperative (PMC) bank. Also Read - 9 Minute, 9 PM: Netizens Light Earthen Lamps, Candles, Burst Crackers, Trend #9baje9minute
Following which the 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. For the next month, Yes Bank will be led by the RBI-appointed administrator Prashant Kumar, an ex-chief financial officer of SBI. Also Read - At 9 PM For 9 Minutes, Candles Burn Bright as People Turn Off Lights, Unite to Fight Coronavirus Together
Meanwhile, account holders rushed to ATMs after the withdrawal limit was capped.
Defending the timing of Yes Bank’s moratorium, RBI governor Shaktikanta Das has assured swift resolution to the issues concerning the beleaguered lender.
The resolution (to Yes Bank) will be done very swiftly, it will be done very fast. 30 days which we have given is the outer limit. You will see a very swift action from RBI, Das told reporters here.
The decision on Yes Bank was taken at a larger level, not only to deal with the problem in an individual entity, but also to maintain stability and resilience of the Indian financial and banking sector, he said.
Let me assure you that our banking sector continues to be sound and safe,” Das said, adding that RBI was ready to effectively deal with the challenge ahead.