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 situation escalated to such an extent that the Mumbai Police control room had to send SOS alerts to check on Yes Bank ATMs across the city to control the law and order situation.
Aggravating the problems of depositors were difficulties accessing the internet banking channel, which ensured that they can’t transfer the funds online as well.
The Reserve Bank of India assured Yes Bank depositors that their interest will be fully protected and that there is no need to panic.
The regulatory actions, undertaken by the RBI and the government, came hours after finance ministry sources confirmed that SBI was directed to bail out the troubled lender.
For the next month, Yes Bank will be led by the RBI-appointed administrator Prashant Kumar, an ex-chief financial officer of SBI.
The country’s financial sector is already reeling under a spate of setbacks, starting with the high quantum of dud assets at over Rs 10 lakh crore, their slow-paced resolutions despite legal teeth through bankruptcy laws, scandals at non-bank lenders like IL&FS and DHFL, and also fraud at cooperative lender PMC Bank.