"Your Deposits Are Safe," Says Yes Bank In Letter To Customers

A day after the Reserve Bank of India (RBI) superseded its Board and imposed a withdrawal limit of Rs 50,000 for 30 days, crisis-ridden private lender Yes Bank, in a letter to its customers asserted that their deposits are safe. The letter, signed by Prashant Kumar, former CFO of State Bank of India (SBI), who has been appointed as Yes Bank's administrator by the RBI, notes that "a solution is being worked upon" to revive the bank before the one-month period of the moratorium put in place by the central bank expires.

It further lists details of the moratorium  and goes on to suggest that the bank is "committed to ensure seamless transactions for customers", while it is in effect.

It also reiterates the exceptions listed by the RBI on the withdrawal limit, in cases of medical treatment, marriage, higher education or other unavoidable emergencies.

Earlier during the day, RBI said the SBI has expressed willingness to invest in crisis-ridden Yes Bank. In a draft reconstruction scheme for the private lender, the central bank also said that the investor bank shall invest in Yes Bank to the extent that it will hold 49 per cent equity after the infusion. 

Shortly after, Finance Minister Nirmala Sitharaman, briefing the media said that governance issue at Yes Bank is a matter of concern and added that deposits and liabilities of the bank will not be affected.

Meanwhile, Yes Bank shareholders suffered huge losses in trade on Friday as the stock plunged 56 per cent to close at Rs 16.20.