The Reserve Bank of India on Thursday superseded the board of troubled private sector lender Yes Bank, and appointed former State Bank of India Chief Financial Officer Prashant Kumar as its administrator.
“…the Reserve Bank has in consultation with Central Government, superseded the Board of Directors of Yes Bank Ltd for a period of 30 days owing to serious deterioration in the financial position of the Bank. This has been done to quickly restore depositors’ confidence in the bank, including by putting in place a scheme for reconstruction or amalgamation” said the central bank in its statement.
“Shri Prashant Kumar, ex-DMD and CFO of State Bank of India has been appointed as the administrator…,” it added.
The Union Finance Ministry also imposed a moratorium on Yes Bank, and barded its withdrawals after considering an application made by the RBI, the government notification said.
The moratorium will come into effect from today and will last till April 3, 2020, while depositors can withdraw up to Rs 50,000, the notification read.