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RBI restriction on Yes Bank may be lifted by March 23

Yes Bank crisis: This development comes after Yes Bank said that customers of the bank would be able to make withdrawals at ATMs of other banks as well

twitter-logoBusinessToday.In | March 9, 2020 | Updated 13:04 IST
RBI restriction on Yes Bank may be lifted by March 23
Yes Bank crisis: RBI announced a reconstruction scheme on Friday

The withdrawal restriction of Rs 50,000 imposed by Reserve Bank of India might be lifted by March 23. April 3 was the deadline of the moratorium placed on the troubled bank.

According to a report in Hindustan Times, the deadline may be shortened as with SBI's role in the rescue plan, the concerns over liquidity and viability of Yes Bank has receded. "With State Bank of India (SBI) running the bank, concerns over liquidity and viability of Yes Bank as a going concern have receded. Placing caps on withdrawals can be counter-productive. The RBI feels the limit can be withdrawn earlier and that should happen by 23 March," as mentioned in a report.

This development comes after Yes Bank said that customers of the bank would be able to make withdrawals at ATMs of other banks as well. "You can now make withdrawals using your YES BANK Debit Card both at YES BANK and other bank ATMs. Thanks for your patience," tweeted the bank on Saturday.

On Friday, the RBI announced a reconstruction scheme for the revival of Yes Bank. It said that SBI has expressed interest to invest in the troubled bank. It would invest in the equity of Yes Bank to the extent that it holds 49 per cent of the shareholding. It added that there will be a new board of directors of the bank. SBI too will have two nominee directors on the board of Yes Bank.

On Monday, the CBI raided seven locations in connection with Rana Kapoor. Kapoor's daughters' firm DoIT Urban Ventures' premises were also searched by the agency. CBI filed an FIR on March 7 against Rana Kapoor, DoIT Urban Ventures, DHFL, promoter of DHFL Kapil Wadhawan and others under sections 120 (B) (Criminal Conspiracy), 420 (Cheating) of Indian Penal Code along with section 7, 12 & 13 of Prevention of Corruption Act. The Economic Offences Wing (1) of CBI lodged the FIR in New Delhi.

Also read: Yes Bank crisis: CBI raids seven locations in connection with Rana Kapoor, others

Also read: Yes Bank crisis: ED arrests Rana Kapoor; CBI alleges kickbacks to daughters' firm

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