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Relief for Yes Bank customers? RBI Governor hints may not take 30 days to resolve crisis

Yes Bank crisis: Governor Das' comments come after RBI imposed restrictions on Yes Bank for a month. Yes Bank depositors can only withdraw Rs 50,000 in that period

twitter-logoBusinessToday.In | March 6, 2020 | Updated 13:14 IST
Relief for Yes Bank customers? RBI Governor hints may not take 30 days to resolve crisis
Yes Bank crisis: Shaktikanta Das said bank needs time

Yes Bank crisis: Reserve Bank of India Governor Shaktikanta Das said on Friday that the apex bank will take swift action for the revival of Yes Bank. The Governor said that the moratorium period of 30 days is the outer limit. "The 30 days which we have given is the outer limit, you will see very swift action from the RBI to put in place a scheme to revive Yes Bank," said the Governor to reporters.

He further said that the bank and management needs time to take the steps they need to take. "A market-based resolution of the problem, a bank laid, investor laid resolution of the problem is always preferable. You have to give time to the bank, management to take the steps they need to take and they tried. RBI intervened when we found it was not working out," he said. 

Also read: YES Bank Crisis Live Updates: It'll be very swift, very fast, RBI Governor on lender's revival process

Governor Das' comments come after RBI imposed restrictions on Yes Bank for a month. Yes Bank depositors can only withdraw Rs 50,000 in that period. The withdrawal limit, however, can be relaxed if the depositor is facing a medical crisis or require it for higher education or marriage purposes. The bank would not be able to sanction or renew loans in the mean time. Yes Bank had lent to IL&FS, Dewan Housing, Jet Airways, Cox & Kings, CG Power, Cafe Coffee Day Altico, among others.

Following RBI's announcement, the share of Yes Bank fell nearly 86.4 per cent on Friday to hit an all-time low of Rs 5.50 on the BSE and Rs 5.65 on NSE, with 1,281 lakh shares trading on the counters. There are no buyers and only sellers offering the stock today.

Meanwhile, Flipkart-owned payments platform PhonePe also suffered an outage on Friday. Yes Bank is PhonePe's banking partner. CEO Sameer Nigam said, "We sincerely regret the long outage. Our partner bank (Yes Bank) was placed under moratorium by RBI. Entire team's been working all night to get services back up asap. We hope to be live in a few hours."

Also read: YES Bank said 'Yes' to all bad boys of Indian banking

Also read: PhonePe services hit as partner Yes Bank collapses

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