YES BANK Crisis: depositors ‘money safe: RBI is trying for its expeditious resolution, says FM Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Friday, March 6 assured cash-starved Yes Bank’s depositors that their money is safe and the RBI is working on an early resolution of the issue Addressing a news conference in New Delhi, she said “I’m in continuous interaction with the Reserve Bank of India (RBI). The central bank is fully seized of the matter and has assured they will give a quick resolution. I want to assure every depositor that their money shall be safe. Their monies are safe,” Sitharaman said adding the steps taken are in the interest of depositors, banks and the economy. “We are fully of seized of the development. RBI governor has assured me that there will be no loss to any depositor,” she said. The Reserve Bank on Thursday imposed a moratorium on the capital-starved Yes Bank, capping withdrawals at Rs 50,000 per account and superseded the board of the private sector lender with immediate effect. Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment. Sitharaman insisted the immediate priority to ensure Yes Bank customers are able to withdraw up to Rs 50,000 limit through cheque till April 3. The Reserve Bank of India or RBI has placed in public domain a draft scheme of revival Yes Bank, the public lender which has been put under the control of the central bank. The RBI had invited suggestions and comments from members of public, including the banks’ shareholders, depositors and creditors on the draft scheme. The draft scheme has also been sent to Yes Bank and SBI for their comments. RBI will receive suggestions up to Monday, March 9, and thereafter take a final view. RBI Governor Shaktikanta Das says the central bank will act swiftly to resolve the issue. All the employees of the reconstructed bank shall continue in its service with the same remuneration and on the same terms and conditions as per the RBI draft. 50,000 limit. For the next month, Yes Bank will be led by the RBI-appointed administrator Prashant Kumar, an ex-chief financial officer of SBI. The board of country’s largest lender State Bank of India on Thursday gave an “in-principle” approval to invest in the capital-starved Yes Bank. Yes Bank has been struggling to execute a capital raising plan for the last six months. Its core equity tier-I ratio had slipped to 8.7 per cent as of September.