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YES Bank's net, mobile banking services hit after RBI caps withdrawal limit

RBI has capped withdrawal limit for YES Bank depositors at Rs 50,000

twitter-logoBusinessToday.In | March 6, 2020 | Updated 00:46 IST
YES Bank's net, mobile banking services hit after RBI caps withdrawal limit
The government, on RBI's recommendations, imposed a moratorium on YES Bank from March 5 to April 3

YES Bank's net and mobile banking services went down soon after the government placed it under moratorium and capped withdrawals by customers. Reports suggest that the private lender's net banking services went down around 9:00 pm on Thursday.

The government, on RBI's recommendations, imposed a moratorium on YES Bank from March 5 to April 3. This order came into effect from 6:00 pm today.

Also Read: RBI imposes moratorium on YES Bank, limits withdrawals to Rs 50,000

The central bank has also superseded YES Bank's board and appointed former Deputy Managing Director and CFO of State Bank of India (SBI) Prashant Kumar as administrator.

"To protect the interest of the depositors and in public interest, it is necessary to issue certain directions to Yes Bank," RBI said in a statement.

Also Read: RBI's board superseding points to graver issues at YES Bank

The RBI has ordered YES Bank not to "grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment, whether in discharge of its liabilities and obligations, or otherwise enter into any compromise or agreement, or shall transfer or otherwise dispose of any of its properties or assets".

RBI has assured the private lender's depositors that there is no need to panic and their interest will be fully protected. It said, "The Reserve Bank will explore and draw up a scheme in the next few days for the bank's reconstruction or amalgamation and, with the approval of the Central Government, put the same in place well before the period of moratorium of thirty days ends so that the depositors are not put to hardship for a long period of time."

Also Read: Why did Yes Bank collapse? Here are 6 main reasons

However, the central bank has also said the withdrawal limit can be increased under special emergency circumstances -- medical treatment of the depositor or any person dependent on them; towards higher education of the depositor or any person dependent on him; to pay essential expenses like marriage or other ceremonies of depositor, his children or of any other dependent; and in any other unavoidable emergency.

The RBI permits a depositor to withdraw a maximum amount of Rs 5 lakh in emergencies.

(Edited by Vivek Dubey)

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