Newsbytes
  • India
  • Business
  • World
  • Politics
  • Sports
  • Technology
  • Entertainment
  • Auto
  • Lifestyle
  • Inspirational
  • Career
  • Bengaluru
  • Delhi
  • Mumbai
  • Videos
  • Visual Stories
  • Reviews
  • Phone Reviews
  • Fitness Bands Reviews
  • Speakers Reviews
  • Find Cricket Statistics
Hindi
More
In the news
Twitter
Zomato
Reliance Jio
Sensex
National Herald
Meta
Newsbytes
Hindi
Newsbytes
User Placeholder

Hi,

Logout


India
Business
World
Politics
Sports
Technology
Entertainment
Auto
Lifestyle
Inspirational
Career
Bengaluru
Delhi
Mumbai
Videos
Visual Stories
Reviews
Phone Reviews
Fitness Bands Reviews
Speakers Reviews
Find Cricket Statistics

More Links
  • Videos

Download Android App

Follow us on
  • Facebook
  • Twitter
  • Linkedin
  • Youtube
 
Home / News / Business News / Troubled Yes Bank under moratorium; withdrawals limited to Rs. 50,000
Business

Troubled Yes Bank under moratorium; withdrawals limited to Rs. 50,000

Troubled Yes Bank under moratorium; withdrawals limited to Rs. 50,000
Written by Ramya Patelkhana
Mar 06, 2020, 12:36 am 3 min read
Troubled Yes Bank under moratorium; withdrawals limited to Rs. 50,000

The Central government has imposed an order of moratorium on troubled private lender, Yes Bank, on Thursday as per the recommendation of the Reserve Bank of India (RBI). The order has come into effect today (March 5) evening and the private bank will be under moratorium until April 3, 2020. Meanwhile, RBI also capped withdrawals at the bank at Rs. 50,000. Here's more.

Details
RBI supersedes the Yes Bank board for 30 days

Issuing the order of moratorium, the Centre stayed the "commencement or continuance of all actions and proceedings" against the capital-starved Yes Bank. Separately, the RBI's release stated that the central bank has superseded the private lender's board for 30 days "owing to serious deterioration in the financial position of the Bank." State Bank of India's former CFO Prashant Kumar was appointed Yes Bank's administrator.

Statement
Yes Bank's financial position underwent a steady decline: RBI

"The financial position of Yes Bank...has undergone a steady decline largely due to inability...to raise capital to address potential loan losses and resultant downgrades, triggering invocation of bond covenants by investors, and withdrawal of deposits," said the RBI. "The bank has also experienced serious governance issues and practices in the recent years which have led to steady decline of the bank," it added.

Quote
Had no alternative, says central bank

"In the absence of a credible revival plan, and in public interest and the interest of the bank's depositors, it (the RBI) had no alternative but to apply to the Central Government for imposing a moratorium," RBI said in its statement.

Depositors
Yes Bank depositors need not panic, says RBI

RBI stated, "...To protect the interest of the depositors and in public interest, it is necessary to issue certain directions to Yes Bank." Assuring the depositors their interests will be protected, it said they need not panic. Also, the withdrawal limit for depositors has some exemptions like medical emergencies, higher education, marriages, and other unavoidable emergencies; but this amount shouldn't exceed Rs. 5 lakh.

RBI's scheme
RBI to draw up scheme for bank's reconstruction or amalgamation

"The Reserve Bank will explore and draw up a scheme in the next few days for the bank's reconstruction or amalgamation and with the approval of the Central Government," said RBI's statement. It added RBI will "put the same in place well before the period of moratorium of thirty days ends so that...depositors are not put to hardship for a long period of time."

SBI-led consortium
SBI to lead consortium to buy stake in Yes Bank

Notably, the Centre's move follows reports earlier in the day that suggested the government has approved a plan for India's largest bank, the State Bank of India, to lead a consortium of banks and financial institutions to buy a stake in Yes Bank. However, experts have reportedly warned against this move. The beleaguered private sector bank has been struggling with mounting bad loans.

Share this timeline
Facebook
Whatsapp
Twitter
Linkedin
Ramya Patelkhana
Ramya Patelkhana
Mail
Ramya Patelkhana is a senior editor at NewsBytes. She has nearly seven years of experience in digital journalism and has previously worked with India News and Authint Media. She has a Bachelor's degree in Journalism and Mass Communication from the IK Gujral Punjab Technical University, Kapurthala, and an advanced diploma in Media Studies from IPW, New Delhi.
Latest
India
Reserve Bank Of India (RBI)
State Bank of India (SBI)
Yes Bank
Ministry of Finance
Latest
Sensex climbs to 58,853 points, Nifty settles at 17,525
Sensex climbs to 58,853 points, Nifty settles at 17,525 Business
'Sita Ramam,' 'Bimbisara,' 'Bullet Train': Analyzing Weekend-1 box office collections
'Sita Ramam,' 'Bimbisara,' 'Bullet Train': Analyzing Weekend-1 box office collections Entertainment
3-year-old in coma after father beats her for playing longer
3-year-old in coma after father beats her for playing longer India
Infinix Hot 12 Pro now available: Check pricing
Infinix Hot 12 Pro now available: Check pricing Technology
#DealOfTheDay: Xiaomi 12 Pro gets discounts up to Rs. 13,250
#DealOfTheDay: Xiaomi 12 Pro gets discounts up to Rs. 13,250 Technology
India
NIA arrested IS suspect from Batla House, family denies charges
NIA arrested IS suspect from Batla House, family denies charges India
Dharamshala: Russian-origin man marries Ukrainian girlfriend in full desi style
Dharamshala: Russian-origin man marries Ukrainian girlfriend in full desi style India
Use these 5 free resources to ace JEE preparation
Use these 5 free resources to ace JEE preparation Career
Commonwealth Games: Indian women's hockey team thrashes Ghana 5-0
Commonwealth Games: Indian women's hockey team thrashes Ghana 5-0 Sports
Here are the interesting facts about the Commonwealth Games
Here are the interesting facts about the Commonwealth Games Sports
More News
Reserve Bank Of India (RBI)
RBI hikes repo rate by 50bps, GDP pegged at 7.2%
RBI hikes repo rate by 50bps, GDP pegged at 7.2% Business
Uber Files: Inside the ride-hailing firm's questionable tactics in India
Uber Files: Inside the ride-hailing firm's questionable tactics in India Business
CBI books DHFL's Wadhawans in Rs. 34000-crore bank fraud case
CBI books DHFL's Wadhawans in Rs. 34000-crore bank fraud case India
What is credit, debit card tokenization rule effective July 1
What is credit, debit card tokenization rule effective July 1 Business
RBI hikes repo rate by 50 bps; EMIs get costlier
RBI hikes repo rate by 50 bps; EMIs get costlier Business
More News
State Bank of India (SBI)
LIC, Reliance among Indian companies in Fortune Global 500 list
LIC, Reliance among Indian companies in Fortune Global 500 list Business
SBI customers can avail banking services via WhatsApp: Here's how
SBI customers can avail banking services via WhatsApp: Here's how Business
Bank PO Exams: Everything about format, eligibility, fees, more details
Bank PO Exams: Everything about format, eligibility, fees, more details Career
India's Q4 GDP pegged at 2.7%, lower than Q3: Experts
India's Q4 GDP pegged at 2.7%, lower than Q3: Experts Business
Bharat Bandh on March 28-29: These services may be hit
Bharat Bandh on March 28-29: These services may be hit India
More News
Yes Bank
DHFL scam: ED attaches builders' properties worth Rs. 415 crore
DHFL scam: ED attaches builders' properties worth Rs. 415 crore India
Yes Bank founder Rana Kapoor gets bail in fraud case
Yes Bank founder Rana Kapoor gets bail in fraud case Business
Depositors to get Rs. 5L insurance if bank under moratorium
Depositors to get Rs. 5L insurance if bank under moratorium Business
Honda is offering cashback worth Rs. 5,000 on Unicorn motorcycle
Honda is offering cashback worth Rs. 5,000 on Unicorn motorcycle Auto
Honda Grazia 125 scooter gets cashback of upto Rs. 5,000
Honda Grazia 125 scooter gets cashback of upto Rs. 5,000 Auto
More News
Ministry of Finance
Money laundering: ED freezes crypto exchange WazirX chief's bank assets
Money laundering: ED freezes crypto exchange WazirX chief's bank assets India
Sitharaman assures Sri Lanka of all possible assistance from India
Sitharaman assures Sri Lanka of all possible assistance from India World
Union Budget 2022: Here are the key takeaways
Union Budget 2022: Here are the key takeaways Business
Income Tax Returns deadline extended to March 15
Income Tax Returns deadline extended to March 15 Business
GST changes from January 1: Here's how it impacts prices
GST changes from January 1: Here's how it impacts prices Business
More News
Next News Article
Next News Article

Love Business news?

Subscribe to stay updated.

Business Thumbnail
India News Business News World News Politics News Sports News Technology News Entertainment News Auto News Lifestyle News Inspirational News
Career News Bengaluru News Delhi News Mumbai News Mukesh Ambani Indian Premier League (IPL) Karnataka Samsung Xiaomi West Bengal
Bihar Virat Kohli Rohit Sharma Haryana Narendra Modi Arvind Kejriwal Tamil Nadu Gujarat Yogi Adityanath YouTube
Instagram Hollywood News Uttar Pradesh Kerala Netflix Bollywood News Mamata Banerjee Maruti Suzuki Rahul Gandhi Elon Musk
Shah Rukh Khan Chelsea FC OPPO Akhilesh Yadav Indian Cricket Team Apple Manchester United Salman Khan Cryptocurrency OnePlus
Amitabh Bachchan ICC Women's World Cup Vivo India vs Sri Lanka
About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive IPL 2022 Schedule IPL 2022 Points Table Find Cricket Statistics
Follow us on
Facebook Twitter Linkedin Youtube
All rights reserved © NewsBytes 2022