Yes Bank depositors have been barred from withdrawing more than Rs 50,000 from their accounts till 3 April 2020. RBI has taken over by dissolving the bank's board. Account holders are upset and the banking sector is worried yet again. The stock market is also in the red.
Banking analyst Hemendra Hazari and The Quint’s Editorial Director Sanjay Pugalia discuss how this mess came about and what the way forward is.
The RBI has asked Yes Bank depositors not to panic and assured them that a reconstruction plan for the bank will be drawn up in the next few days.
“The Reserve Bank assures the depositors of the bank that their interest will be fully protected and there is no need to panic. In terms of the provisions of the Banking Regulation Act, 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, put the same in place well before the period of moratorium of thirty days ends.”Reserve Bank of India
Yes Bank has deposits totalling Rs 2.09 lakh crore and over 28 lakh savings bank accounts.
Since Yes Bank is also one of the biggest back-end solution platforms for making UPI payments across popular services like Swiggy and PhonePe, online shopping giant Flipkart and others, major digital services have also been affected in the country as a result.
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