Yes Bank To Resume Full Banking Services From 6 pm Today, Likely to Face Withdrawal Rush

New Delhi: Crisis-hit Yes Bank has announced that it will resume full banking services from 6:00 pm on Wednesday and customers will be able to access all banking services from March 19 onwards.

On March 5, the Reserve Bank of India (RBI) imposed a moratorium on the troubled private sector lender, including capping withdrawals at Rs 50,000 per depositor. The moratorium would be lifted by 6 pm on March 18, as per the reconstruction scheme notified by the government on Friday.

Yes Bank to resume full banking services from 6 pm, today. Reserve Bank of India (RBI) had imposed moratorium on the bank & capped withdrawals at Rs 50,000, on 5th March. pic.twitter.com/OBXIz3XXqp

— ANI (@ANI) March 18, 2020

In the wake of this development, bank’s administrator and new investors have assured all deposit holders that their savings in the bank were absolutely safe and customers would have a much better experience when they resume usual interaction with the lender.

“There is no need to worry about safety of deposits in the bank. The bank has emerged stronger with the equity support of domestic banks and quick action by the RBI and the government. So when normal banking services resume tomorrow, customers can expect to get much better experience,” Prashant Kumar, Yes Bank administrator and the next MD and CEO of the bank’s newly constituted board, told media persons at a press conference.

Meanwhile, with services being resumed, the bank might see a heavy withdrawal of deposits by customers.

However, the bank has said that it has sufficient funding lines available with it and based on analytics and positive vibes generated by the restructuring scheme, there would not be a flurry of withdrawals.

The State Bank of India (SBI), which has become the anchor investor in Yes Bank after if picked up close to 49 per cent stake in the bank, also said that it did not see nervous depositors flocking Yes Bank branches for withdrawals once normally banking services resumed. “There are sufficient funding lines to meet any eventuality. We do not see another moratorium being put in place,” said SBI Chairman Rajnish Kumar.

(With Agency inputs)