Yes Bank depositors money is safe, no need to worry: FM Nirmala Sitharaman

Finance Minister Sitharaman on Friday said that money of every depositor is safe. FM added that steps have been taken to ensure interests of depositors is safeguarded. She said, "I am in continuous interaction with RBI. Central bank has assured that it will find a quick resolution.

Finance Minister Sitharaman on Friday said that money of every depositor is safe, Photo: Reuters

A day after Yes Bank was put under moratorium and ban imposed on its activities, including putting a Rs 50,000 cash withdrawal limit on its bank account by account holders, FM Nirmala Sitharaman announced that their money will be safe. This reassurance came after widespread panic by account holders who lined up at Yes Bank branches and ATMs to withdraw their money in cities like Mumbai, Pune and others.

Finance Minister Sitharaman on Friday said that money of every depositor is safe. FM added that steps have been taken to ensure interests of depositors is safeguarded. She said, "I am in continuous interaction with RBI. Central bank has assured that it will find a quick resolution. I want to also assure every depositor that their money shall be safe. Steps that are taken now are in the interest of depositors, bank and the economy. There are doubts among depositors but I assure their money is safe."

Sitharaman added."Reserve Bank has taken cognizance of the matter. RBI is finding out an amicable resolution and that has been the case over the past couple of months. So, it`s not as if it came suddenly."

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She also said, "RBI Governor has assured me that the matter will be resolved soon."

The minister revealed, "RBI has come up with a plan and a resolution will be found at the earliest. We have a course which is in everybody`s interest."

Chief Economic Advisor Krishnamurthy Subramanian too had spoken to the media today in order to reassure account holders and all others involved with Yes Bank. He said that there is no need for depositors to panic and assured all depositors' funds will remain safe.

RBI Governor Shaktikanta Das today said, "The 30 days which we have given is the outer limit. You will see very swift action from the RBI to put in place a scheme to revive. A market-based resolution of the problem, a bank-laid, investor- laid resolution of the problem is always preferable."

Das added, "You have to give time to the bank and management to take the steps. The RBI intervened when we found it was not working out."

Yes Bank share price fell as much as 57.3 per cent intra-day to Rs 15.70 apiece today as a reaction to RBI move late yesterday night.

Reason for RBI moratorium imposed on Yes Bank was that the bank`s financial capability has undergone a steady decline largely due to the inability of the bank to raise capital.

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