Mumbai, March 6: On Thursday, at 6 pm, Yes Bank was placed under a moratorium by the Reserve Bank of India (RBI). There was panic as RBI capped deposit withdrawals at Rs 50,000 per account for a month for customers. According to an ANI tweet, frantic depositors lined outside ATMs across the country hours after the news came out. However, they faced several problems, including closed down machines and long queues.
In Mumbai, in order to control the situation, the Mumbai police control room had to send SOS alerts to check on Yes Bank ATMs across the city to keep a check on the law and order situation. Customers said, "We weren't informed. Wanted to withdraw cash but ATM ran out of cash, as many withdrew. We're in trouble, Holi is coming" YES Bank Crisis: Reserve Bank Caps Withdrawals at Rs 50,000, Appoints Former SBI Chief Financial Officer as Administrator.
Shri Prashant Kumar, ex-DMD and CFO of State Bank of India has been appointed as the administrator under Section 36ACA (2) of the Act." The restriction was imposed on YES Bank after it was found that the private bank was grappling with mounting bad loans.
Check ANI tweet:
Mumbai: RBI imposed moratorium for a month on Yes Bank due to 'serious deterioration in its financial position', capping withdrawals at Rs 50000. Customers say "We weren't informed. Wanted to withdraw cash but ATM run out of cash,as many withdrew. We're in trouble,Holi is coming" pic.twitter.com/aSWcKjA0NK
— ANI (@ANI) March 5, 2020
Aggravating the problems of depositors were difficulties accessing the internet banking channel, which ensured that they can't transfer the funds online as well. The mobile app and the net banking website services were also down. The employees of YES Bank also complained that they did not receive any intimation. One of the employees said, "There has been no intimation to employees as well. after the notification, there is no email or Whatsapp notification from the management."
(The above story first appeared on LatestLY on Mar 06, 2020 07:31 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).