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Yes Bank crisis: This Gujarat firm withdrew Rs 265 crore hours before RBI restrictions

On Thursday, the RBI restricted withdrawals from Yes Bank to Rs 50,000 per depositor due to the private lender's precarious financial situation.

twitter-logoPTI | March 7, 2020 | Updated 18:56 IST
Yes Bank crisis: This Gujarat firm withdrew Rs 265 crore hours before RBI restrictions on lender
Yes Bank

Vadodara Smart City Development Company, a Special Purpose Vehicle (SPV) of the Vadodara Municipal Corporation (VMC), withdrew Rs 265 crore from Yes Bank a day before the Reserve Bank imposed a moratorium, an official said on Friday.

On Thursday, the RBI restricted withdrawals from Yes Bank to Rs 50,000 per depositor due to the private lender's precarious financial situation.

Sudhir Patel, chief executive officer of the SPV and deputy municipal commissioner of the VMC, said the amount had been received from the Centre as part of a grant under the Smart City Mission and deposited with a local Yes Bank branch.

It was withdrawn two days ago considering the problems faced by Yes Bank and transferred to a new account at Bank of Baroda, he informed.

Also Read: YES Bank crisis: How SBI executed a perfect 'rescue plan'

Also Read: YES Bank Collapse: ED grills Rana Kapoor; raids continue on second day 

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