Yes Bank crisis, Rs 50,000 withdrawal cap

The Yes bank is in crisis and the RBI in a bid to save the customers have taken over the function temporarily and put a cap of Rs 50,000 on each withdrawal.

This triggered a frantic run from across the state as the Yes Bank customer of Assam and rest of India have panicked hours after the private bank was placed under a moratorium by the RBI.

In Mumbai, the situationescalated to such an extent that the Mumbai Police control room had to send SOSalerts to check on Yes Bank ATMs across the city to control the law and ordersituation.

Aggravating the problems ofdepositors were difficulties accessing the internet banking channel, whichensured that they can't transfer the funds online as well.

The Reserve Bank of India assuredYes Bank depositors that their interest will be fully protected and that thereis no need to panic.

The regulatory actions,undertaken by the RBI and the government, came hours after finance ministrysources confirmed that SBI was directed to bail out the troubled lender.

For the next month, Yes Bank willbe led by the RBI-appointed administrator Prashant Kumar, an ex-chief financialofficer of SBI.

The country's financial sector isalready reeling under a spate of setbacks, starting with the high quantum ofdud assets at over Rs 10 lakh crore, their slow-paced resolutions despite legalteeth through bankruptcy laws, scandals at non-bank lenders like IL&FS andDHFL, and also fraud at cooperative lender PMC Bank.