Current Affairs Economy & Banking

Category : Economy & Banking

The Central Government of India imposed temporary prohibition of the activity of the capital-starved Yes Bank and capped withdrawals at Rs. 50,000 per account after considering an application made by the Reserve Bank of India. The board of Yes Bank has been superseded with immediate effect by the Reserve Bank of India (RBI). The RBI also assured the depositors of the bank that their interest will be fully protected and there is no need to panic. Former SBI CFO Prashant Kumar has been appointed as administrator of Yes Bank. Yes Bank has been grappling with mounting bad loans. The latest development comes six months after the regulator did the same with the city-based cooperative lender PMC Bank after a large scam was unearthed.

The depositors will be allowed to withdraw more than Rs. 50,000 under the following conditions: In connection with the medical treatment of the depositor or any person actually dependent on him. Towards the cost of higher education of the depositor or any person actually dependent on him for education in India or outside India. To pay obligatory expenses in connection with marriage or other ceremonies of the depositor or his children or of any other person actually dependent upon him. In connection with any other unavoidable emergency.