Depositors Money Is Safe: FM Nirmala Sitharaman On Yes Bank Crisis

Yes Bank

A day after the Reserve Bank of India (RBI) placed restrictions on Yes Bank, its shares have fallen sharply on the stock market.

New Delhi| Finance Minister Nirmala Sitharaman today said that Reserve Bank of India is working towards for early resolution of Yes Bank issue. RBI governor has assured that there will be no loss to any Yes Bank depositor, the finance minister said, adding that the steps taken to take control of Yes Bank are in the interest of depositors, bank and the economy.

“I want to assure every depositor’s money is safe, and I’m in constant touch with RBI,” Finance Minister Nirmala Sitharaman said.

Both RBI and government are looking at Yes Bank issue in detail and the course of action will be in everyone’s interest, Sitharaman said.

The immediate priority is to ensure Yes Bank customers are able to withdraw money within 50,000, she added.

The banking regulator on Thursday superseded the board of the troubled private lender with immediate effect and placed it under a 30-day moratorium. It has also appointed former State Bank of India CFO Prashant Kumar to pull the bank out of a crisis.

Investors should also note that no Futures and Options (F&O) contracts shall be available in Yes Bank for trading in the equity derivatives segment from May 29, 2020. The development has also had a wider effect on banking stocks, which were trading in red on Friday. Meanwhile, panicked Yes Bank customers rushed to ATMs after the withdrawal limit was capped.

Also Read: Millenial choice of Ola, Uber leading to crisis in Auto Industry: Nirmala Sitharaman

Earlier in the day, RBI chief Shaktikanta Das pledged to act swiftly to resolve the Yes Bank crisis. The Reserve Bank of India on Thursday capped withdrawals at ₹50,000 and imposed strict limits on operations at the country’s fourth-largest private lender, while a rescue plan is devised within 30 days.

In a statement late on Thursday, the regulator said it was forced to step in after Yes Bank’s latest effort to raise new capital failed to materialize and as the lender “was facing regular outflow of liquidity.”

Shares of the private sector lender crashed nearly 65 per cent to Rs 12.95 on the BSE index. It had closed at Rs 36.85 on Thursday after sliding over 25 per cent.

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