‘Scheme to Revive Yes Bank in 30 Days’: RBI Guv Shaktikanta Das
He also said that there is always debate over RBI acting prematurely or taking too long to act.
A day after Yes Bank capped the withdrawal limit at Rs 50,000 per account for a month, RBI governor Shaktikanta Das on Friday, 6 March, stated that they will come out with a rescue plan for Yes Bank soon, adding that they intervened when the timing was appropriate.
Talking about the rescue plan, he said it will done very fast. “We have given them 30 days, which is the outer limit. You will see very swift action from the RBI to put in place a scheme to revive the bank.”
He stated that Yes Bank released two press statements a day ago wherein they explained in detail the background of RBI’s decision.
Yes Bank’s shares tanked 57.6 1 percent at Rs 15.6 on Friday. RBI, on Thursday, also stated that the board of Yes Bank has also been superseded with immediate effect.
Why Did RBI Take So Long?
Das stated, "There's always the question then that RBI acted pre-maturely and then the other view is that we took so long."
He further continued, “A market-based resolution of the problem, a bank laid, investor laid resolution of the problem is always preferable. You have to give time to the bank, management to take the steps they need to take and they tried, RBI intervened when we found it was not working out.”
He maintained that the RBI will come up a plan very soon.
“Let me assure you that our banking sector continues to be sound and safe," Das said, adding that RBI was ready to effectively deal with the challenge ahead.
"We stand committed to maintaining stability of financial and banking sector,” he said.
Meanwhile, Das also assured that the central bank will take every measure needed to secure the economy against the challenges arising from the coronavirus epidemic.
“RBI stands ready to intervene in whatever way required to respond to epidemic challenges,” Das said, as he expects global growth to slow down due to coronavirus.
No Need to Panic: SBI Chairman
Speaking to the media, SBI Chairman Rajnish Kumar also extended the same assurances, saying that there was no need to panic.
“The RBI governor, in their press statement have clearly said that there is no need for panic. The interest of all stakeholders, particularly the depositors, will be protected,” Kumar said on Friday.
(With inputs from PTI)
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