Yes Bank depositors money is safe, assures Nirmala Sitharaman

Mangalore Today News Network

New delhi, March 06, 2020:  Finance Minister Nirmala Sitharaman today said that Reserve Bank of India is working towards for early resolution of Yes Bank issue. RBI governor has assured that here will be no loss to any Yes Bank depositor, the finance minister said, adding that the steps taken to take control of Yes Bank is in interest of depositors, bank and the economy.

 

"I want to assure every depositor’s money is safe, and I’m in constant touch with RBI," Finance Minister Nirmala Sitharaman said.

Both RBI and government are looking at Yes Bank issue in detail and the course of action will be in everyone’s interest, Sitharaman said.

The immediate priority is to ensure Yes Bank customers are able to withdraw money within ₹50,000, she added.

Earlier in the day, RBI chief Shaktikanta Das pledged to act swiftly to resolve the Yes Bank crisis. The Reserve Bank of India on Thursday capped withdrawals at ₹50,000 and imposed strict limits on operations at the country’s fourth-largest private lender, while a rescue plan is devised within 30 days. In a statement late on Thursday, the regulator said it was forced to step in after Yes Bank’s latest effort to raise new capital failed to materialize and as the lender “was facing regular outflow of liquidity."“It will be done very swiftly, it will be done very fast," Das told reporters in Mumbai on Friday, adding that 30 days was the “outer limit." “Let me assure you the Indian banking sector remains sound and safe."

Yes Bank’s shares, which plunged 85% following the seizure, pared some of the losses to trade down 50% Das’s comments. The benchmark BSE Sensex tumbled 3%.

State Bank of India said on Thursday that “an in-principal approval has been given by the board to explore investment opportunity" in Yes Bank.