As panic gripped customers of the crisis-hit YES Bank after the RBI imposed a 30-day moratorium on it, Union Finance Minister Nirmala Sitharaman on Friday assured the depositors that their money is “safe”.
Addressing the media, Sitharaman said she is in constant in touch with the RBI in connection with the matter and added that the steps, which have been taken, are in the interest of the depositors, the bank and the economy.
She further said the RBI Governor has himself assured that the matter will be resolved soon. “Both RBI and Government of India are looking at this. I have 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,” she added.
On Thursday, the Reserve Bank of India superseded the board of troubled private sector lender YES Bank and imposed a 30-day moratorium on it “in the absence of a credible revival plan” amid a “serious deterioration” in its financial health.
During the moratorium, which came into effect from 6 pm on Thursday, YES Bank will not be allowed to grant or renew any loans, and “incur any liability”, except for payment towards employees’ salaries, rent, taxes and legal expenses, among others.
Withdrawals from the bank have been capped at Rs 50,000 per depositor with few exceptions till April 3.
Distressed and angry customers of the crisis-hit YES Bank trooped outside scores of branches and ATMs in Mumbai, Thane, Pune, Nagpur and other cities on Friday to withdraw money after the RBI imposed curbs on withdrawal apart from other measures late on Thursday.
Panicky customers rushed to the ATMs since late Thursday for withdrawals but many soon became dry, leaving them exasperated, especially in the suburbs and residential areas, and the scene was repeated on Friday morning in commercial areas of south Mumbai, Bandra Kurla Complex, Andheri, Lower Parel, etc.
Besides, customers said certain UPI transactions which are on the Yes Bank PSP are reportedly not going through and all types of accounts are inaccessible even via net-banking, and many fintech players are hit badly.
Meanwhile, RBI Governor Shaktikanta Das today said the Central bank took the step after it found that the private sector lender’s efforts were not working out. Das further said the RBI is ready to deal with the challenges of the move very effectively’ and added that “very swift action” will be seen from the Central bank to revive YES Bank.
Chief Economic Advisor Krishnamurthy Subramanian has assured all depositors of YES Bank that their funds will remain safe and there is no need to panic.
Given the state of the customers of PMC Bank with around a dozen deaths reported so far, there are few takers for the Yes Bank’s arguments after the sudden developments last night.
The Yes Bank has over 1,000 branches and 1,800-plus ATMs around the country which are under severe stress after the crisis erupted last night.