Yes Bank depositors can withdraw up to Rs 5 lakh for emergency, says RBI-appointed administrator

Yes Bank’s RBI-appointed administrator Prashant Kumar on Friday said customers who need funds in excess of Rs 50,000 can withdraw up to Rs 5 lakh for medical treatment, marriage, higher education, or any other unavoidable emergency.

This came a day after RBI imposed a moratorium on the troubled private lender on March 5, 2020 which will be effective up to April 3, 2020. The withdrawal limit has been capped at Rs 50,000 owing to the financial position of the bank.

In a message to Yes Bank customers, Kumar said a solution is being worked upon to revive the bank well before the moratorium period of 30 days ends.

“I would like to apprise you that this is a temporary moratorium made by the Government to protect the interest of the Bank’s customers. I wish to reassure you that your deposits are safe with the Bank,” he said. 

“While the withdrawal limit for each depositor has been capped at Rs. 50,000 in aggregate from all accounts, I and the entire team of YES BANK are committed to ensure seamless transactions for customers during the period of moratorium,” the former CFO of State Bank of India said. 

“If you require funds in excess of Rs. 50,000 for medical treatment, marriage, higher education, or any other unavoidable emergency, a provision has been made for consideration up to Rs. 5 Lakh with the approval of the Reserve Bank of India,” the message to customers said. 

A solution is being worked upon to revive the Bank well before the moratorium period of 30 days ends, he added. 

Kumar assured that the interest of the customers is the top priority of the bank. 

Meanwhile, the RBI has put out a draft scheme of reconstruction of Yes Bank with SBI likely to pick up 49% stake. 

According to RBI, SBI has expressed its willingness to invest in Yes Bank and participate in its reconstruction scheme. SBI will have to pick up 49% stake in Yes Bank and stay invested for at least three years, as per the RBI’s draft scheme of reconstruction.

The authorised capital of Yes Bank will stand altered to Rs 5,000 crore only and number of equity shares will stand altered to 2,400 crore of Rs 2 each from the appointed date, the central bank said in its revical scheme. 

Courtesy : DNA

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