AIMIM chief Asaduddin Owaisi slams Centre after RBI imposed a moratorium on Yes Bank
AIMIM chief Asaduddin Owaisi has hit out at the Centre after RBI imposed a moratorium on Yes Bank, capping withdrawal limit to Rs 50,000 asking is our savings safe from banks. Troubled private sector lender Yes Bank was placed under a "moratorium" on late Thursday, with the RBI capping depositor withdrawals at Rs 50,000 per account for a month and superseding the board with immediate effect.
The Reserve Bank of India (RBI) took the decision in consultation with the government to protect depositors' interest.
Slamming the Centre, Owaisi took to Twitter and said, "First it was non-banks like ILFS & Dewan that collapsed under the weight of a crashing economy. Then a big cooperative bank in the rich state of Maharashtra, PMC Bank failed. Now we’ve the first-ever scheduled commercial bank to fail: Yes Bank. Are our savings safe from banks?"
What next for Yes Bank
Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.
However, it will be able to pay salaries to its over 20,000 employees, the central bank said.
The regulatory actions, undertaken by the RBI and the government, came hours after finance ministry sources confirmed that SBI was directed to bail out the troubled lender.
For the next month, Yes Bank will be led by the RBI-appointed administrator Prashant Kumar, an ex-chief financial officer of SBI.
The country's financial sector is already reeling under a spate of setbacks, starting with the high quantum of dud assets at over Rs 10 lakh crore, their slow-paced resolutions despite legal teeth through bankruptcy laws, scandals at non-bank lenders like IL&FS and DHFL, and also fraud at cooperative lender PMC Bank.
The last lender to be placed under a similar action was PMC Bank in September last year. While the withdrawal limits have been increased over time to Rs 1 lakh now, many PMC Bank depositors are still in the lurch.
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