RBI Caps Withdrawal Limit from Cash-starved Yes Bank at Rs 50,000 Per Month

New Delhi, March 6, 2020:

The Reserve Bank of India (RBI) has imposed restrictions on the withdrawal amount from Yes Bank accounts to Rs 50, 000 till April 3, 2020. The decision was reportedly taken after the bank failed to raise capital to address potential loan losses.

The Ministry of Finance, in a notification, stated that Yes bank depositors would not be able to withdraw more than Rs 50,000 (all accounts combined), which is applicable from March 5, 2020 to April 3, 2020.

RBI, in a notification, has said, that the financial position of Yes Bank has undergone a steady decline due to the inability to raise capital to address potential loan losses and resultant downgrades.

"The bank has experienced serious governance issues and practices. RBI made all efforts to facilitate the restructuring and exploring opportunities to infuse capital to the bank which did not materialise," it said.

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However, any amount above the said sum can be allowed only for a few unavoidable purposes with special permission from the Reserve Bank of India such as Medical Emergency, Payment for foreign education for a dependent and Marriage in the family.

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The central government has also stated that during the moratorium period of Yes Bank that if an individual holds more than one account, even then s/he will be unable to withdraw an amount exceeding RS 50,000.

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