Finance Minister says RBI, govt working together on YES Bank resolution

NEW DELHI: Finance Minister Nirmala Sitharaman on Friday said that she was constantly in touch with the Reserve Bank of India (RBI) over YES Bank, assuring depositors of a quick resolution for the private lender.

Sitharaman said she has personally monitored the situation for a couple of months now. The FM said the recent decisions taken were in everyone’s interest.

"RBI and government working together on the YES Bank issue," she said, adding that she cannot give details of the resolution plan as of now.

The FM said that she will talk to RBI and ensure YES Bank depositors do not face cash crunch.

The assurance came at a time when several reports suggested that YES Bank depositors were lining up at bank ATMs, and online customers were witnessing app freezes on Friday, after RBI the capped cash withdrawal limit at the bank.

RBI capped the withdrawal limit for bank customers at Rs 50,000. It said it has superseded the board of YES Bank for a period of 30 days, owing to serious deterioration in the financial position of India’s fifth largest private bank.

The RBI said that the absence of a credible revival plan and availability of private capital led it impose a moratorium to protect depositor interest.