The government of India has imposed a withdrawal limit of Rs.50,000 for depositors of Yes Bank for one month. The notification regarding this was issued by the Ministry of Finance. The cap will be in effect till 3 April. GoI has allowed a few exemptions in cases like higher education, medical emergency, marriage, and unavoidable emergency for the limit on withdrawal. RBI’s announcement: Reserve Bank of India (RBI) stated that Yes Bank’s board has superseded for a period of 30 days that owes to a serious deterioration in the financial position of the bank. Former Chief Financial Officer (CFO) of SBI Prashant Kumar has been appointed as administrator for Yes Bank. RBI assured depositors of Yes Bank that their interest would be fully protected. RBI stated that it would explore and draw up a scheme for the bank’s reconstruction or amalgamation in terms of the provisions of the Banking Regulation Act. Yes Bank scam: The founder of crisis-hit Yes Bank Rana Kapoor was arrested by the Enforcement Directorate (ED) on 7 March for the alleged bank scam worth Rs.4,300 crore. Prevention of Money Laundering Act (PMLA) was filed against him.
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