Shaktikanta Das: Don’t panic, will take swift action to revive Yes Bank before 30 days: RBI chief Shaktikanta Das assures customers

Economy


Reserve Bank of India (RBI) governor Shaktikanta Das has assured a “swift and fast” resolution for the troubled Yes Bank within 30 days. Das also assured Yes Bank depositors that there is no need to panic and their interest will be fully protected.

“It will be done very swiftly, it will be done very fast. 30 days is the outer limit. You will see very swift action by RBI to put in place a scheme to revive Yes Bank,” Das said.

Speaking to media persons on the sidelines of a conference Das said the central bank had to step in after it was clear that the bank management could not muster the required capital.

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“When we found that it was not working out and we found that we cannot and should not wait any longer RBI decided to intervene. Therefore the timing is quite appropriate and I can assure you that the RBI will come out with a scheme very shortly,” Das said.

Yes Bank was put under a government imposed moratorium last evening with depositors in the bank not allowed to withdraw more than Rs 50000. Former SBI CFO Prashant Kumar has been appointed as the administrator for the bank. SBI itself is likely to led a group of investors who will infuse funds in the bank.

Das said the RBI would have preferred a market led resolution by the current management. But had to step in after it did not work out.

“There could be a question that RBI acted prematurely and also another view that why did it take so long…As we have explained a bank led or investor led resolution of the problem is always preferable, so naturally (we had to) give time for the bank and management to take whatever efforts that they need to take and the bank did try over the last several months,” he said adding that RBI had to step in after the management could not muster capital.



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