Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday said that a swift action will be seen from the banking regulator to revive the Yes Bank. The RBI Governor also said that the decision to supersede the board of India’s fifth private sector bank has been taken with a view to deal with both the bank and maintain the resilience of the financial sector.
"We have issued two press notes on Yes Bank explaining why we took the decision. The 30 days which we have given is the outer limit, you will see very swift action from the RBI to put in place a scheme to revive Yes Bank. A market-based resolution of the problem, a bank laid, investor laid resolution of the problem is always preferable. You have to give time to the bank, management to take the steps they need to take & they tried, RBI intervened when we found it was not working out," Das told reporters.
Chief Economic Adviser Krishnamurthy Subramanian supported the RBI decision saying the moratorium on Yes Bank is the right decision, while adding that interest of depositors will be protected.
"I want to assure all depositors that their funds will remain safe, and there is no need to panic," Subramanian told reporters.