Money & Banking

RBI to roll out Scheme of reconstruction/amalgamation for YES Bank soon: Shaktikanta Das

Our Bureau Mumbai | Updated on March 06, 2020

Reserve Bank of India (RBI) Governor Shaktikanta Das   -  File photo: PTI

The Reserve Bank of India (RBI) will come out with a scheme of reconstruction or amalgamation for troubled YES Bank shortly, according to Governor Shaktikanta Das.

Referring to the order of moratorium and directions issued against YES Bank, Das said: “....when we found that we cannot and we should not wait any longer, the RBI decided to intervene. So, therefore, I think the timing is quite appropriate.

“I can assure you the RBI will come out with a scheme, as we have said in our press statement, very shortly.”

The Governor spoke to the media on the sidelines of a banking summit organised by Assocham.

The RBI has assured the depositors of the bank that their interest will be fully protected and there is no need to panic.

In a statement issued on Thursday, the RBI said: “In terms of the provisions of the Banking Regulation Act, the Reserve Bank will explore and draw up a scheme in the next few days for the bank’s reconstruction or amalgamation and with the approval of the Central Government, put the same in place well before the period of moratorium of 30 days ends, so that depositors are not put to hardship for a long period of time.”

 

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Published on March 06, 2020
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