New Delhi, March 5: The Reserve Bank of India on Thursday has put YES Bank on effected moratorium from March 5 to April 3. In the latest circular, effective from 6 pm onwards, the RBI had imposed a cap on the private lender to pay more than Rs 50,000 to the depositors during the moratorium period. The new cap is applicable for all the depositors who have multiple accounts with the bank.

According to the latest update, the Reserve Bank has imposed the restrictions on the leading private lender after it found that YES Bank has been grappling with mounting bad loans. Sources claimed that, along with other financial institutions, State Bank of India would be helping capital-starved Yes Bank to bail-out. RBI Monetary Policy: Repo Rate Unchanged at 5.15%, GDP Growth For 2020-21 Pegged at 6%.

Releasing the statement on its decision, the RBI had said, "In exercise of the powers conferred under 36ACA of the Banking Regulation Act 1949, the Reserve Bank has in consultation with Central Government, superseded the Board of Directors of Yes Bank Ltd for a period of 30 days owing to a serious deterioration in the financial position of the Bank. This has been done to quickly restore depositors' confidence in the bank, including by putting in place a scheme for reconstruction or amalgamation. Shri Prashant Kumar, ex-DMD and CFO of State Bank of India has been appointed as the administrator under Section 36ACA (2) of the Act."

Here's RBI tweet:

Among other details pouring in, as per news agency PTI, RBI has superseded the board of YES Bank with immediate effect. The apex bank had also appointed former SBI chief financial officer Prashant Kumar as administrator for Yes Bank.

(The above story first appeared on LatestLY on Mar 05, 2020 09:44 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).