Published On : Fri, Mar 6th, 2020

Yes Bank Crisis : Panic erupts among Nagpur customers as they make beeline at bank, ATMs

Nagpur: Demonetization like scene was witnessed at Yes Bank branch and ATM booths in Nagpur on Friday as hordes of Bank account holders across the city were seen rushing to the bank, making a beeline to withdraw their money, after the bank was placed under moratorium by the Reserve Bank of India (RBI).

“There is no safety to be honest. What’s happening is frightening. As Indians we feel our banks are not safe anymore. What was most frustrating is that the digital platform’s just shutdown. Neither the mobile nor internet banking is working. I had to borrow money from my father,” said a Yes Bank account holder while sharing his plight.

Yes Bank was placed under a moratorium Thursday evening, with the RBI capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board. The RBI action came after the Rana Kapoor-promoted bank failed to raise capital to address potential loan losses.

The withdrawal limit, however, can be relaxed in case of medical emergencies, higher education and for expenses related to marriages.

The taking over by RBI means Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment. For the next one month, Yes Bank will led by the RBI-appointed administrator Prashant Kumar, an ex-chief financial officer of SBI.