Yes Bank resolution will be done very swiftly; 30 days is outer limit: RBI Governor
RBI Governor Shaktikanta Das on Friday said that the Yes Bank resolution will be done very swiftly and will soon come out with a scheme to revive the capital-starved Bank within the outer limit of 30 days. He also said that the decision of imposing a moratorium on Yes Bank was taken at a "larger level" and not at the individual entity level, with the aim to ensure the safety of the financial system, said the RBI governor.
He ensured that the efforts will be put by RBI to revive Yes Bank and said that the RBI's decision on Yes Bank will help maintain the resilience of the financial sector.
While addressing media, Das said, "The 30 days which we have given is the outer limit, you will see very swift action from the RBI to put in place a scheme to revive."
He further said, "A market-based resolution of the problem, a bank laid, investor laid resolution of the problem is always preferable. You have to give time to the bank, management to take the steps they need to take and they tried, RBI intervened when we found it was not working out."
Meanwhile, the Chief Economic Advisor Krishnamurthy Subramanian assured depositors that their funds will be kept safe. He said, "I want to assure all depositors that their funds will remain safe, and there is no need to panic."
On Thursday, the RBI superseded the Yes Bank board for 30 days and appointed an administrator, putting a cap of Rs 50,000 on withdrawal by account holders for a month.
The RBI said that the bank's board was superseded "owing to a serious deterioration in the financial position of the Bank". Former SBI CFO Prashant Kumar was appointed as administrator of Yes Bank.
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