Panicked Yes Bank depositors lined up outside the ATMs across the country hours after the bank was placed under a moratorium by the RBI.?
The RBI on Thursday capped deposit withdrawals at Rs 50,000 per account for a period of one month for consumers.?
Yes Bank depositors quickly moved to ATMs to withdraw cash but faced a lot of problems which includes closed ATMs and long queues after the RBI announced the bank is placed under moratorium.?
In Mumbai, the situation escalated to such an extent that the Mumbai Police control room had to send SOS alert to check on the ATMs across the city to control the law and order situation.?
The problems increased as the depositors were finding it difficult to access the internet banking which ensured that they can¡¯t transfer the funds online either.?
The shutters were pulled down at different Yes Bank ATMs in Mumbai.?
The Reserve Bank of India on Thursday announced that Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability and agree to disburse any payment.?
The RBI assured all the depositors that their interest will be fully protected and that there is no need to panic.?
This action by the RBI and the government came after hours of finance ministry sources confirmed that SBI - State Bank of India was directed to bail out the troubled lender.?
For the next month operations, Yes Bank will be headed by RBI- appointed administrator Prashant Kumar and ex-chief financial officer of SBI.
The country¡¯s financial sector is already under a stone as a lot of setbacks have come aiming for it. The last lender to be placed under similar take was PMC Bank in september last year. While the withdrawal for this bank has increased to 1 lakh over time, many PMC bank depositors are still in confusion.?
Apparently, there is no provision for handling insolvency for commercial banks. RBI Has superseded the board of Yes Bank for a time period of 30 days, just like DHFL and PMC.?