Yes Bank resolution to be done very soon, 30 days is outer limit: RBI Governor

Mumbai: After restricting withdrawal limit at the Yes Bank, Reserve Bank of India (RBI) governor Shaktikanta Das today said that the central bank will soon take "swift action" to revive the capital-starved private lender. "You will see very swift action from RBI putting in place a scheme to revive Yes Bank,"Das said at an event.

The Reserve Bank of India on Thursday imposed a moratorium on the capital-starved Yes Bank and capped withdrawals at ₹50,000 per account for the next one month. The board of Yes Bank were superseded with immediate effect, the bank regulator said in a statement.

"Yes Bank resolution will be done very swiftly. 30 days is outer limit," RBI chief assured.

RBI took the decision of Yes Bank at a 'larger level', not at individual entity level, RBI governor mentioned. The decision is aimed at ensuring safety of financial system, Das added.

"You will see very swift action from RBI putting in place a scheme to revive Yes Bank," RBI chief assured. The central bank also assured Yes Bank depositors that there is no need to panic and their interest will be fully protected.

The shares of private lender Yes Bank fell to the lowest in a decade today after the regulator's order. Yes Bank shares were down by ₹12.85 a share or 34% to ₹34.87 a share from its previous close.

RBI's moratorium on Yes Bank is credit negative as it affects timely repayment of bank depositors and creditors, said Moody's.

Brokerages like Zerodha have cancelled requests linked to the Yes Bank accounts and are seeking a change to other bank accounts so that funds are not blocked.

"We have cancelled all fund withdrawal requests made by clients to their YES bank accounts so that the money doesn't get blocked. Please change, if your primary bank account is YES, to any other and withdraw the funds," Nithin Kamath said in a tweet.