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Mumbai: Finally, Yes Bank has gone the PMC way, with the Reserve Bank of India on Thursday evening superseding the Board of Directors and imposing a moratorium on withdrawals and advances for a month as the bank's financials deteriorated.
Depositors can now pull out a maximum of Rs 50,000 per head even if an individual has more than one account, a government gazette notification said.
The outstanding amounts on drafts and pay orders issued so far would be paid in full, it said.
The bank can breach the cap on withdrawals for exceptional events in a depositor’s life such as a medical emergency, payment for higher education or for marriages.
This shall not exceed Rs 5 lakh.
A similar situation had arisen for depositors at PMC Bank last September.
The crisis first came to light on September 24, 2019, when RBI placed curbs on the activities of the Mumbai-based bank for six months.
There was panic among depositors as the central bank limited the amount a customer could withdraw from their account during the next six months — to Rs 1,000 at first.
Later, that limit was raised to Rs 25,000.
Anticipating a similar panic situation, RBI has this time issued an upfront assurance to Yes Bank depositors, saying that their interest will be fully protected.
“The RBI assures the depositors of the bank that their interest will be fully protected and there is no need to panic,” it said.
“In terms of the provisions of the Banking Regulation Act, the Reserve Bank will explore and draw up a scheme in the next few days for the bank’s reconstruction or amalgamation and with the approval of the Central Government, put the same in place well before the period of moratorium of 39 days ends so that the depositors are not put to hardship for a long period of time,” it said.
