Banking crisis: Finance Minister Nirmala Sitharaman assures there will be no loss for bank customers, says deposits and liabilities will not be affected
Aware of the decision of the Reserve Bank of India (RBI) to suspend the board of directors of Yes Bank and limit the withdrawal of customers to only Rs 50,000 for one month until April 3, the Minister of Finance Nirmala Sithraman on Friday, March 6, addressed a press conference to assure the bank’s customers that their deposits and liabilities will not be affected due to the poor performance of the bank. She said that the RBI has been continuously monitoring the governance and performance of Yes Bank since 2017, and only after her clearance, the RBI decided to impose the restrictions saying that bank customers need not worry because the situation would soon be normal.
FM also assured Yes Bank employees that they had nothing to worry about and guaranteed them salaries for at least a year. She informed that Yes Bank has lent huge sums to companies like Essel, DHFL, ILFS, Vodafone which are very stressed and loss facing companies.
She also promised strict actions against those responsible for the bank’s losses and situation, adding that investigative agencies would not spare the culprits.
Addressing the finance minister’s presser, RBI Governor Shaktikanta Das said the central bank would take swift action to revive the bank’s business and condition.
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RBI appointed administrator of Yes Bank, Prashant Kumar, told the media that the current moratorium was put into effect with the interest of depositors in mind and that these measures would help restore their confidence.
The central bank is trying to find a solution to revive the Bank before the end of the 30-day moratorium. Soon customers will be able to transact seamlessly and RBI assures depositors that their money is safe and there is no need to panic or worry about their money.