RBI Takes Over Yes Bank Board, Caps Withdrawals At Rs 50,000

Yes Bank

New Delhi: The government on Thursday, issued an order of moratorium staying the “commencement or continuance of all actions and proceedings” against the beleaguered private lender Yes Bank. In an official notification issued by the finance ministry on Thursday evening, the government also imposed a withdrawal limit of Rs 50,000 for the bank’s depositors.

The regulations mentioned in the moratorium will stay in effect till 3 April, 2020, according to the notification.

The Reserve Bank of India (RBI) in a separate release stated that the bank’s board has been superseded for a period of 30 days “owing to serious deterioration in the financial position of the Bank”.

The development comes after earlier during the day reports suggested that the government has approved a plan for the nation’s biggest lender, State Bank of India, to lead a consortium that will buy a stake in Yes Bank.

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