YES Bank Crisis: Private Bank Assures Depositors That Their Money Is Safe, Says 'Solution Being Worked Upon for Revival'
Union Finance Minister Nirmala Sitharaman and RBI assuring the YES Bank depositors that their money is safe, the private lender issued a circular stating that solution is being worked out to upon to revive the YES Bank.
New Delhi, March 6: With Union Finance Minister Nirmala Sitharaman and Reserve Bank of India assuring the YES Bank depositors that their money is safe, YES bank on Friday issued a circular stating that solution is being worked out to upon to revive the Bank well before the moratorium period of thirty days ends.
Releasing the statement, YES Bank wrote, as CNBC TV18 quoted, "The current moratorium has been brought into effect keeping the depositors' interest in mind and towards resoring their confidence. A solution is being worked upon to revive the Bank before the moratorium period of thirty days ends. The Bank is also taking necessary steos to ensure seamless transactions for the customers. We assure the depositors that their money is safe and there is absolutely no reasosn to panic. Look forward to continued support from the depositors." YES Bank Crisis: FM Nirmala Sitharaman Says 'Centre, RBI Monitoring Private Lender Since 2017'; Asks RBI to Probe Matter
Here's the YES Bank statement, tweeted by CNBC TV18:
Earlier in the day, briefing the press conference, FM Sitharaman on Friday said that assured the depositors again that their money is safe and the government is committed to safeguard their interest. The FM said, "Government is completely committed to ensure that depositor's interest is safeguarded." She also said that deposits and liabilities will not be affected, while employment and salaries are assured for at least one year.
Meanwhile, RBI has issued a drafty scheme of reconstruction for YES bank. Accoring to ten draft plan, SBI to invest in reconstructed bank for up to 49 percent stake of YES Bank and it would not cut holding below 26 percent before three yaers from the date of capital infusion. Also, among other things, SBI would have two nominee directors in the new board of YES bank, while RBI would appoint additional directors to the nee board of reconstructed bank.
On Thursday evening, Reserve Bank of India put YES Bank under a moratorium and capped deposit withdrawals at Rs 50,000 per account for a month for customers. Following this, panic grew among the depositors in the fifth largest privat sector bank, who complained that neither the ATMs, net banking or mobile banking was working.
(The above story first appeared on LatestLY on Mar 06, 2020 06:29 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).