In a rare move, the capital-starved Yes Bank was placed under the moratorium on Thursday, with the central bank capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board. The withdrawal restrictions, which came into effect as of 6 pm on March 5 will remain in place until April 3, 2020.
After RBI’s restrictions, Yes 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.
RBI has also superseded the institution’s Board of Directors for a period of 30 days and has appointed Prashant Kumar, the former CFO of State Bank of India as its administrator.
The regulatory actions undertaken by the RBI and the government, came hours after finance ministry sources confirmed that SBI was directed to bail out the troubled lender.
According to the latest information, Yes Bank cannot make in aggregate, a payment to a depositor of an amount exceeding Rs 50,000 lying to his credit, in any savings, current FDs or any other deposit account till April 3.
So in that case, if you are an account holder at private lender Yes Bank, you can not withdraw more than Rs 50,000 for the next month, even if you want to.
However, RBI has also said it may allow greater withdrawals, but only in certain circumstances like expenses for medical treatments, weddings and education.
People have started queuing up outside the branches of Yes Banks as its ATMs have stopped functioning after the bank was placed under moratorium by the Reserve Bank of India.” I have tried to take out cash from ATMs but they were blocked by Yes Bank. NEFT transactions were also not taking place. I came here at 7 am to withdraw money.” Yogesh Sharma , a Yes Bank customer at fort branch in Mumbai.