(Image source from: Moneycontrol.com)
Yes Bank Board Superseded by RBI:- The Reserve Bank of India (RB) imposed a month-long moratorium and superseded the board of Yes Bank yesterday. The RBI made sure that the depositors are safe and their interests would be protected saying that there is nothing to panic. After July 2004, this is the first time RBI took a crucial move on a big bank. In July 2004, the Oriental Bank of Commerce (OBC) was taken by Global Trust Bank. Yes Bank has been struggling to raise 2 million USD in equity from the past few months.
RBI named Prashant Kumar, the former deputy managing director of State Bank of India as the administrator for the Yes Bank for time being. All the depositors will be restricted to withdraw Rs 50,000 even after having multiple accounts. A cap of Rs 5 lakhs will be assured in case of medical emergencies or higher education fees and marriage expenses. RBI said that it had no other option except for going with imposing a moratorium. Due to the surging bad loans, the lender turned wobbly. Reserve Bank even declined to extend the term of Rana Kapoor, the founder as Chief Executive.