Yes Bank depositors' money safe, assures FM
March 06, 2020  13:56
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Finance minister Nirmala Sitharaman assures account holders of Yes Bank that their deposits are safe. Speaking to reporters outside Parliament House, Sitharaman said, "Both RBI and the government are looking at the Yes Bank issue in detail. We have taken a course which will be in everyone's interest." 


She said the RBI as the regulator is working for an early resolution to the Yes Bank issue and the moratorium on withdrawals was taken in interest of depositors, the bank and the economy. "The RBI governor assured me that  the matter will be resolved quickly. And I can assure depositors that will  not lose their money," she said. 

She said the immediate priority was to ensure Yes Bank customers are able to withdraw money within the Rs 50,000 cap.  She said for account holders who needed emergency withdrawals, a proviso was made within the legal framework for withdrawals up to Rs 5 lakh.  She said she would also ensure that there was no cash crunch at the Yes Bank branches across the country which is seeing a huge queues of worried account holders this morning. 


The Reserve Bank on Thursday placed Yes Bank under a moratorium and imposed limits on withdrawals. "This is not a sectoral problem. It is a bank-specific problem," SBI chairman Rajnish Kumar said. "The RBI will take all steps to ensure financial stability." On SBI picking up a stake in Yes Bank, he said the lender already has an in-principle approval for doing so. "If SBI has to pick up a stake in Yes Bank, we have an in-principle approval for that," he said.

The RBI has capped withdrawals from Yes Bank at Rs 50,000 for the next one month and imposed strict limits on operations after the cash-starved lender faced "regular outflow of liquidity" after an effort to raise new capital failed.
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