RBI suspended the private sector lender’s board of YES Bank for 30 days. After this news today on Friday, YES Bank stock prices drop Up to 85%. As well as Sensex was also down to 1400 points today.
RBI has to take this important step because YES Bank was failed to increase additional capital from the market to manage its debt woes and it was creating a serious drop in the financial condition of the Bank.
According to Finance Minister Nirmala Sitharaman, all deposits and liabilities will be honored and YES Bank employees’ salary has been assured for at least 1 year. RBI will look into the matter and check what things went wrong in YES Bank and fix the issues. According to Finance Minister Nirmala Sitharaman depositors’ money is safe and no need to get panic. The condition will be under control soon.
RBI also capped the withdrawal limit to 50000 for the account holders in YES Bank. After the announcement by RBI, lots of people tried to transfer their money from YES Bank to another account and it put down the internet banking servers of YES Bank.
According to RBI Governor Shaktikanta Das, this big decision was taken after consideration on a larger high level and not an individual entity level. The decision was made for the security of the financial system.
Mr. Shaktikanta Das also assured, “RBI stands ready to intervene in whatever way required to respond to epidemic challenges”.