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FM Nirmala Sitharaman assures ‘Yes bank’ depositors

The govt has reassured the depositors of capital starved private sector lender Yes Bank a day after the Reserve Bank of India imposed a moratorium on all its transactions.

Union Finance Minister NirmalaSitharaman said that they she’s in regular touch with the RBI over the issue the work is on to resolve matters swiftly.

The FM also said that the central bank has taken the step in the interest of the financial institution, its depositors & the country’s economy.

The RBI after consultations with the Central govt imposed a moratorium on the country’s fourth largest lender and superceded its board of directors on thursday.

Withdrawals by depositors have been restricted to Rs. 50,000 a month and Yes Bank has also been barred from granting or renewing any loan or advance, making any investment, incurring any liability or agreeing to disburse any payment.

The FM clearly said that Yes Bank’s troubles began much before the NDA govt came into power as it loaned money to several companies the fortunes of which suffered later on.

For the next 30 days. The Reserve Bank has also appointed former State Bank of India Chief Financial Officer Prashant Kumar as its administrator who took over his new responsibility on Friday.

The day also saw RBI Governor Shaktikanta Das justifying the moratorium saying ‘swift action’ will be taken to revive Yes Bank and the 30-day moratorium is the ‘outer limit’ for sorting everything out.

He also assured that the banking sector will remain fully functional and safe. Chief Economic Advisor also reassured Yes Bank depositors about safeguarding their interests.

Thursday also saw the SBI board giving its “in-principle” approval to exploring investment opportunities in Yes Bank.

The next day, the RBI also presented its draft ‘Yes Bank Ltd. Reconstruction Scheme, 2020’ which made SBI’s role in the troubled bank’s revival official along with other terms of strategic investment.

The RBI’s measure to tackle the crisis in Yes Bank apart from the global coronavirus crisis impacted the stock markets as well on Friday.

After tanking 1,459 points during the day..the BSE Sensex settled 893.99 points or 2.32 per cent lower at 37,576.62 at closing.

Yes Bank shares opened on the markets with a 25% fall and went beyond 50% in morning trade..At closing time..it was down 56%.
 

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