Lender placed under moratorium; withdrawal capped at Rs 50,000; govt, central bank flag governance issues
Yes Bank Crisis: The reserve financial institution of india (rbi) on thursday superseded the board of bothered non-public zone lender sure financial institution and imposed a 30-day moratorium on it “within the absence of a credible revival plan” amid a “serious deterioration” in its financial fitness.
Former country financial institution of india chief economic officer prashant kumar has been appointed administrator of yes bank, and every depositor could be capable of withdraw only up to rs 50,000 in overall until the moratorium is in vicinity, the rbi said in two reputableStatements issued on thursday evening. but, in amazing situations together with a clinical emergency or marriage, depositors can withdraw up to rs five lakh or the quantity lying in account, whichever is less.
That is the first time that a financial institution of this size may be positioned beneath a moratorium by means of the rbi. at some point of the moratorium, which got here into impact from 6 pm on thursday, sure bank will now not be allowed to grant or renew any loans, and “incur any liability”, except for payment closer to personnel’Salaries, rent, taxes and prison fees, amongst others. The imperative bank stated the decision became taken within the public interest and inside the interests of the financial institution’s depositors, and that it turned into left with “no opportunity”…
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