After, The Reserve Bank of India (RBI) said a “moratorium” has been imposed on Yes Bank till April 03, 2020, which created a situation of panic among its customers, Finance Minister Nirmala Sitharaman on Friday assured that money of every depositor is safe.
She stated that the steps have been taken in the interest of depositors, bank and the economy.
“I am in continuous interaction with RBI has assured that they will find a quick resolution. I want to also assure every depositor that their money shall be safe. Steps that are taken now are in the interest of depositors, bank and the economy. There are doubts among depositors but I assure their money is safe,” Sitharaman told reporters.
“Reserve Bank has taken cognizance of the matter. RBI has gone over and over again to find out an amicable resolution and that has been over the past couple of months. So, it’s not as if it comes suddenly now. RBI Governor has assured me that the matter will be resolved soon,” she said.
“We have been monitoring the situation. Now, RBI has come up with a plan and a resolution will be found at the earliest. I along with RBI was monitoring the situation in the past couple of months and therefore we have a course which is in everybody’s interest,” the minister added.
Earlier, Chief Economic Advisor Krishnamurthy Subramanian said that there is no need for depositors to panic and assured all depositors’ funds will remain safe.
Yes, Bank stocks plunged by 57.3 per cent intra-day to Rs 15.70 today.
On Thursday, the RBI said a moratorium has been imposed on Yes Bank, stressing that the bank’s financial capability has undergone a steady decline largely due to the inability of the bank to raise capital. During the period of moratorium, the government stated that depositors of Yes Bank will not be able to withdraw more than 50,000 rupees irrespective of the no of bank accounts they hold.