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Want to assure every depositor's money is safe: Sitharaman on Yes Bank crisis

Finance Minister Nirmala Sitharaman on Yes Bank crisis Friday said that the RBI Governor has assured her there will be no loss to any Yes Bank depositor, a day after the central bank imposed a moratorium on the banking institution.

India TV Business Desk India TV Business Desk
New Delhi Updated on: March 06, 2020 14:09 IST
Want to assure every depositor's money is safe: Sitharaman on Yes Bank crisis

Want to assure every depositor's money is safe: Sitharaman on Yes Bank crisis

Finance Minister Nirmala Sitharaman on Yes Bank crisis Friday said that the RBI Governor has assured her there will be no loss to any Yes Bank depositor, a day after the central bank imposed a moratorium on the banking institution. The Finance Minister said that RBI as a regulator is working for an early resolution to Yes Bank issue. Steps are taken in the interest of depositors, bank and economy.

Further speaking on the crisis, Sitharaman said, "Both RBI and the government is looking at Yes Bank issue in detail, we have taken a course which will be in everyone's interest. The RBI governor has assured me there will be no loss to any Yes Bank depositor."

The Reserve Bank on Thursday imposed a moratorium on the capital-starved Yes Bank, capping withdrawals at Rs 50,000 per account and superseded the board of the private sector lender with immediate effect.

How moratorium will affect Yes Bank

Yes Bank has been struggling to execute a capital raising plan for the last six months. Its core equity tier-I ratio had slipped to 8.7 per cent as of September. Therefore, following a moratorium, the bank will be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.

For the next month, Yes Bank will be led by the RBI-appointed administrator Prashant Kumar, an ex-chief financial officer of SBI.

The board of country's largest lender State Bank of India on Thursday gave an "in-principle" approval to invest in the capital-starved Yes Bank.

Sitharaman insisted the immediate priority to ensure Yes Bank customers are able to withdraw money within Rs 50,000 limit. The bank had also delayed its December quarter results.

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