New Delhi, March 6: Finance Minister Nirmala Sitharaman attempted to allay the concerns of panic-struck YES Bank depositors, as the Reserve Bank of India (RBI) has imposed a cap on their withdrawals. Sitharaman, while speaking to reporters outside the Parliament, said the deposits of all account holders will remain safe. The regulatory action was necessitated, she claimed, adding that situation is being constantly monitored by the government. PhonePe Services Go Off After RBI Puts Moratorium on YES Bank Operations, Users Resent on Social Media.
"I want to assure all the depositors that their money is safe, I am constantly in touch with the Reserve Bank of India (RBI). The steps that are taken are in the interest of the depositors, the bank and the economy," Sitharaman said, adding that she is personally monitoring the operation undertaken by the central bank. YES Bank Shares Nosedive 58% After RBI Supersedes, Sensex Falls 3%.
Sitharaman claimed that she has spoken to RBI Governor Shaktikanta Das to ascertain how long it would take for the cap on withdrawals to be lifted. Das, she added, has assured that the matter would be resolved in the next few days.
"RBI Governor has assured me that the matter will be resolved soon. Both RBI and Government of India are looking at this, I've personally monitored the situation for a couple of months along with RBI and we have taken the course that will be in everybody's interest," Sitharaman added. YES Bank Crisis: Frantic Customers Line Up Outside ATMs as RBI Caps Withdrawals at Rs 50,000 For a Month.
Earlier in the day, Das told the media that a 30-day time limit has been set for resolving the crisis which has plagued YES Bank. "The 30 days which we have given is the outer limit, you will see very swift action from the RBI to put in place a scheme to revive YES Bank," he added. For the next month's period, however, the bank would remain barred from sanctioning or advancing fresh loans, making agreements, leasing assets, making payments or incurring any new liabilities.
(The above story first appeared on LatestLY on Mar 06, 2020 02:43 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).