YES Bank Crisis: Rs 50,000 Withdrawal Limit May be Revoked by End of Week, Says Administrator
Prashant Kumar, who has been appointed as administrator of crisis-hit YES Bank, on Monday said the Reserve Bank of India (RBI) could lift the Rs 50,000 cap on withdrawal of deposits by the end of this week.
Mumbai, March 9: Prashant Kumar, who has been appointed as administrator of crisis-hit YES Bank, on Monday said the Reserve Bank of India (RBI) could lift the Rs 50,000 cap on withdrawal of deposits by the end of this week. Prashant Kumar was appointed as administrator after the RBI placed the private lender under a moratorium, capped deposit withdrawals at Rs 50,000 per account for a month and superseded its board last week. Rana Kapoor, Founder of Crisis-Hit YES Bank, Arrested by ED Under PMLA.
"There is absolutely no worry for depositors in the bank. Your money is absolutely safe. Moratorium could be lifted in few weeks," Kumar told CNBC-TV18. "First priority for us is customers. ATMs of other banks are available to YES Bank customers since Saturday. Our target is to make all banking services available at the earliest," he added. Kumar in a letter last week had assured YES Bank customers that their "deposits are safe". YES Bank Crisis: Nirmala Sitharaman Asks RBI to Probe Matter.
YES Bank ATMs ran dry on Saturday after depositors rushed to withdraw money. The developments also disrupted Unified Payments Interface (UPI) offered by fintech firms such as PhonePe. The number of UPI transactions across the country saw a sharp dip on Friday largely because PhonePe couldn't operate as it is plugged into YES Bank to provide UPI-based account-to-account transfer services. PhonePe facilitates 20 million transactions a day.
The Enforcement Directorate (ED) has arrested YES Bank founder Rana Kapoor and booked him under the Prevention of Money Laundering Act (PMLA). A separate investigation carried out by the Central Bureau of Investigation has revealed that he and his family members were paid Rs 600 crore as kickback by DHFL promoter Kapil Wadhwan in the garb of a "builder loan".
(The above story first appeared on LatestLY on Mar 09, 2020 04:48 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).