The Reserve Bank forced a ban on Yes Bank and imposed withdrawals at ₹50,000 per account till assist orders. The board of Yes Bank has moreover been superseded with quick impact, the Reserve Bank of India (RBI) said. This withdrawal from Yes Bank at ₹50,000 per depositor and superseded the lender’s board, citing a serious deterioration in financial condition. The private moneylender has been banished from issuing loans or transferring its properties but it’ll pay compensations to representatives. As per news reports, Yes Bank has been battling to raise capital since the last year. Stressed customers were on Friday lining recently before Yes Bank ATMs and branches to withdraw cash.
CS Richa Thakur, Actively looking for a job change in Pune for the post of Company Secretary said, “Withdrawal cap on Yes Bank announced at Rs. 50000/-. This is terrible. Another bank in crisis. Is not putting all money in one bank is a solution? Or should we put money in PSU’s or mix of private and PSU’s?” Agreeing with Ms. Thakur, Sunil Damania, Chief Investment Officer-Marketsmojo and Consulting Editor-Business India said, “I am unable to understand the logic of Yes Bank surging 26% today. Will SBI consortium taking over will change the fortune of Yes Bank? The way stock has been volatile in the last 12 months it’s not a portfolio stock. The counter has been proved injurious to investors’ health.”
The government has put a ban on YES Bank from March 5 to April 3 on the proposition of Reserve Bank of India (RBI). The order came into impact from 6 pm. The private bank will not pay donors more than Rs 50,000 in the midst of the boycott period, free of number of accounts with bank. The RBI too guaranteed the contributors of the bank that their intrigued will be completely secured and there’s no need to panic. Former SBI CFO Prashant Kumar has been appointed as the Chairman for Yes Bank. Yes Bank will be able to pay salaries to it’s over 20,000 workers, the RBI said. The most recent development comes six months after the controller did the same with the city-based cooperative bank PMC Bank after a large scam was uncovered. Sharad Goel, Chief Communications Officer – Crisis Comms & Strategic Comms, IL&FS Board stated, “One more Corporate – this time a Bank – that failed to see the writing on the wall and struggled hard. Board superseded, moratorium on withdrawal imposed. Hope it recovers YES BANK”
The depositors will be permitted to withdraw more than ₹50,000 only if the following conditions are met:
- In terms of medical treatment of the depositor or any person dependent on him.
- Any person dependent on him for education in India or outside India.
- To pay obligatory expenses in connection with marriage or other ceremonies of the depositor or his children or of any other person actually dependent upon him.
- In connection with any other unavoidable emergency.