Reserve Bank of India (RBI) Governor Shaktikanta Das on Monday assured that Yes Bank depositors' money remained safe. Das also assured Yes Bank depositors and said there was no need to withdraw money in panic.
Addressing the media, the RBI Governor said if required, the central bank would provide liquidity to support YES Bank.
The RBI governor's comment came in wake of recent fall in the deposit base of crisis-hit YES Bank. The bank's deposit base had fallen considerably in the last five months as worried customers withdrew money from their savings and term deposits with the distressed lender. It had plunged from Rs 2.09 lakh crore in September 2019 to Rs 1.65 lakh crore in December 2019. It has declined further to Rs 1.37 lakh crore as on March 5, 2020.
YES Bank's savings deposits fell 25 per cent on quarter-on-quarter (q-o-q) basis to Rs 29,764 crore in the December quarter of FY20. While term deposits declined 22 per cent sequentially to Rs 1.12 lakh crore, current account deposits fell by 6 per cent q-o-q to Rs 23,440 crore during the period under review.
Earlier on March 5, the Reserve Bank of India (RBI) had placed YES Bank under moratorium. The Bank had given out large loans to business which it had then failed to recover. The bank is set to resume full banking operations from 6:00 pm on March 18. This means, YES Bank customers will be able to access all banking services from March 19 onwards.
By Chitranjan Kumar