RBI-appointed administrator Prashant Kumar said on Monday that the moratorium on Yes Bank could be lifted by Saturday.
New Delhi| The imposition of a withdrawal cap on Yes Bank’s depositors and the bank’s dramatic takeover by a Reserve Bank of India-appointed administrator on March 5 meant the bank’s liquidity situation was fragile.
Still, Prashant Kumar, the newly-appointed administrator is clear that the bank is optimistic that the usual banking services will resume shortly, and that depositors could even expect to start full withdrawals as early as the end of this week.
Currently, the government has imposed a moratorium and YES Bank depositors cannot withdraw more than Rs 50,000 till April 3.
“I would like to assure all depositors: there is absolutely no need to worry or to panic. Your deposits are absolutely safe. We are expecting all problems to be sorted out and the moratorium could be lifted as early as this week,” he said.
“For us, the first priority is the customers and how to provide the seamless business to our customers. All of us are working towards making the entire banking services available to our customers as soon as possible,” Kumar added.
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The YES Bank’s administrator added that the bank will declare its results on March 14.
State Bank of India (SBI) chairman Rajnish Kumar, also said on Monday that the moratorium on Yes Bank could be lifted as early as “within a week”. In an interaction with NDTV, the SBI chairman said, “I want to assure Yes Bank customers that once we (SBI) step in, they shouldn’t worry about money… The financial system is sound.” His comments come days after the Reserve Bank of India (RBI) unveiled a bailout plan for Yes Bank, under which SBI will invest up to Rs 10,000 crore in the beleaguered private sector lender.
The RBI has taken control of Yes Bank after the debt-laden lender failed to raise the capital it needs to stay above mandated regulatory requirements.
(Inputs from Indianexpress)
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