Yes Bank resumes full banking services as RBI lifts moratorium
The ailing private lender Yes Bank on Wednesday confirmed that its banking services are now fully operational. At 6 pm on Wednesday, the Reserve Bank of India (RBI) lifted the moratorium that it had imposed on Yes Bank earlier this month as the lender failed to raise capital to stay afloat. Now, the bank's customers can resume regular transactions and cash withdrawals as before.
Yes Bank tweeted, "Our banking services are now operational. You can now experience the full suite of our services. Thank you for your patience and co-operation." Reportedly, the lender does not expect a rush in cash withdrawals, however, it has braced itself for the same. RBI Governor Shaktikanta Das on Monday said that the apex bank will intervene with additional liquidity if required.
Our banking services are now operational. You can now experience the full suite of our services. Thank you for your patience and co-operation. #YESforYOU @RBI @FinMinIndia
— YES BANK (@YESBANK) March 18, 2020
On March 5, the RBI had imposed a 30-day moratorium on Yes Bank. The RBI had stepped-in as the cash-strapped bank had failed to raise $2 billion. The apex bank had capped cash withdrawals for Yes Bank depositors at Rs. 50,000, causing major panic. It also superseded the lender's board and appointed State Bank of India CFO Prashant Kumar as the bank's administrator.
Addressing a press conference on Tuesday, Kumar said Yes Bank has enough liquidity and assured that there was no reason to worry. He said the bank had enough supply of cash across all ATMs. The Yes Bank administrator also said that the bank was able to pull back up within 13 days through the efforts of the RBI and other financial institutions.
The RBI had proposed a reconstruction scheme to rescue Yes Bank. The SBI infused Rs. 6,050 crore for a 48.21% stake. Separately, the ICICI and the HDFC Banks invested Rs. 1,000cr each into Yes Bank, Axis Bank invested Rs. 600cr, Kotak Mahindra Bank invested Rs. 500cr, Bandhan Bank and Federal Bank invested Rs. 300cr each, and the IDFC First Bank invested Rs. 250cr.
Government issue Gazette notification following approval by Union Cabinet "Yes Bank Limited Reconstruction Scheme, 2020" yesterday.@nsitharamanoffc @RBI @DFS_India @PIB_India pic.twitter.com/wlGiD1FGX1
— Ministry of Finance (@FinMinIndia) March 14, 2020
