The central government, today, has restricted the withdrawal limit from capital starved, Yes Bank at ₹50,000, in the next one month, for thirty days. This restriction, which came into effect from 6 pm today, will remain in place upto April 3, 2020.
The bank cannot make in aggregate, payment to a depositor of a sum exceeding Rs. 50,000 lying to his credit, in any savings, current or any other deposit account till April 3rd, said a government notification.
The RBI however said it may allow payment of over ₹50,000 to Yes Bank depositors an amount in excess of Rs. 50,000 like expenses for medical treatment, marriage and education.
It may be mentioned that, As part of its action plan on the bank, the Reserve Bank of India (RBI) has capped withdrawals by depositors at Rs 50,000 for a month from March 5 until April 3. The central bank also superseded the board of YES Bank and appointed Prashant Kumar, former Deputy Managing Director and CFO of State Bank of India (SBI), as administrator. For a duration of thirty days, the bank will not be able to grant or renew any loan or advance. It also can’t invest or incur any liability. As part of the RBI clampdown, YES Bank also can’t transfer or dispose of properties or assets.
Hashtags on Yes Bank have been trending on Twitter since last night.