Yes Bank account holders can withdraw Rs 50k only as RBI imposes moratorium
From now on, Yes Bank customers will be able to withdraw only Rs 50,000 as the Reserve Bank of India’s (RBI) imposed a moratorium on the capital-starved lender on Monday. The account holders can withdraw a maximum amount of Rs 50,000 (even if they have multiple accounts) for a month. However, the RBI will relax the withdrawal limit up to Rs 5 lakh in case there is a medical emergency, higher education fee or wedding expenses to be meted out.
The lending bank will not be allowed to renew, grant any fresh loans or advance, make any investment, incur any liability or disburse any payments. However, drafts and pay orders issued so far will be paid in full.
The RBI’s notification said that the financial position of the bank has undergone a steady decline due to its inability to raise capital to address potential loan losses and resultant downgrades.
The RBI’s statement read, “The bank has experienced serious governance issues and practices. RBI made all efforts to facilitate the restructuring and exploring opportunities to infuse capital to the bank which did not materialize.”
The lender has been going through turbulent times since Ravneet Gill took over the chief executive last March and revealed massive stress in the loan book. Since then the lender bank has been going slow on fresh loans and also struggling to raise $2billion in equity for the last few months but without any success.