Mumbai: The Reserve Bank of India (RBI) will soon come out with a scheme to revive the capital-starved Yes Bank, RBI Governor Shakti Kanta Das said on Friday.
“We took the step (of putting it under moratorium) when we found that Yes Bank efforts were not working. Depositors’ interests will be fully protected,” Das told the media here.
A decision has been taken not only to deal with the problem in the individual entity but also to maintain resilience of the Indian financial sector, Das maintained.
He said that the RBI’s decison on Yes Bank will help maintain the resilience of financial sector.
The RBI Governor said that the global growth was expected to slow down due to coronavirus outbreak and all central banks are resolved to work in close coordination.
The RBI is ready to intervene in whatever way required to respond to epidemic challenges, he said.
“We have robust forex reserves, but non-stigmatised currency swap lines need to be launched by the IMF to ease liquidity pressures globally,” Das noted.
He said that the Yes Bank issue’s resolution will be done very swiftly, with 30 days as the outer time limit.
“There is always a question that the RBI acted prematurely, or we have acted late. We have a market-led resolution to the problem, an investor-led resolution,” the RBI chief remarked.
On Thursday, the RBI superseded the Yes Bank board for 30 days and appointed an administrator, putting a cap of Rs 50,000 on withdrawal by account holders for a month.
The RBI said that the bank’s board was superseded “owing to serious deterioration in the financial position of the Bank”. Former SBI CFO Prashant Kumar was appointed as administrator of Yes Bank.