The Reserve Bank of India (RBI) has dissolved the board of directors of Yes Bank, a private sector struggling cash bank, and appointed an administrator on it. The Reserve Bank has appointed Prashant Kumar, the former Chief Finance Officer of State Bank of India (SBI), the administrator of Yes Bank. The bigger thing is that RBI has banned Yes Bank and has set withdrawal limit of Rs 50,000. According to the RBI, this step has been taken to protect the interests of depositors after consultation with the government. The Board of Directors failed to raise the necessary capital for the bank for the last six months.
Since this decision, bank depositors have faced trouble. They were facing difficulties in withdrawing money from ATMs. There are long queues at the ATM. There is no money in ATMs if machines are found closed. Apart from this, the customers of Yes Bank are also unable to use internet banking.
If you are a customer of Yes Bank, then what is important for you and what you will have to do, learn here:
- The government has now set a withdrawal limit of Rs 50000 for customers. This order is for the next 1 month. However, in the exception, this amount can be up to 5 lakh rupees, such as medical emergency, marriage, education etc.
- Yes Bank cannot permit or renew any loan or advance. No one can invest.
- The bank has also clarified that it will be able to pay salaries as well as salaries to its 20,000 plus employees.
- If you have a salary account with Yes Bank, you will have to manage some other funds now.
- If you are paying EMI from Yes Bank, talk to your receiving bank immediately and ask for a month’s time to sort things out.
- The bank depositors were assured that their interests would be fully protected and there was no need to panic.
Yes Bank stock opened 25 percent on Friday and it went down to 83 percent approx in morning trading. On the other hand, the SBI Board has given in-principle approval for investment in Yes Bank. The SBI board informed the stock markets that the matter related to Yes Bank was discussed in the bank central board meeting on Thursday and the board has given in-principle approval to explore investment opportunities in the bank.