RBI Sets Rs. 50,000 Withdrawal Limit on Yes Bank
The Reserve Bank of India on Thursday evening superseded the board of directors Yes Bank and limited cash withdrawal to Rs 50,000.
In 2017, the RBI found that the Yes Bank had given out a lot of loans which had not been paid back. Plus the Bank has been suffering major losses. The RBI gave Yes Bank time to collect the money. Ravneet Gill the MD & CEO of Yes Bank kept trying to collect the money back but it failed.The Yes Bank account holders continued to make large withdrawals which put the Bank at risk. This is why the RBI has superseded the Yes Bank Board and and taken control of the Bank.
RBI has appointed managing director and chief finance officer of State Bank of India, Prashant Kumar, as the administrator of Yes Bank.They have imposed a Rs 50,000 withdrawal limit. Upto Rs 5 lakh can be withdrawn in case of emergency like hospital expenses, higher education, marriage, etc. This will last for 30 days.Deposits of upto Rs 5 lakh will be insured.But shareholders of Yes Bank will mostly lose all their investments. The Yes Bank has total deposits of Rs 2.09 lakh crore and has 28.6 lakh saving accounts.The RBI is trying to save the company now lets see what happens.