Jagannath Temple's deposits worth Rs 592 cr with Yes Bank to be put in govt bank: Minister

Odisha Minister Pratap Jena on Friday stated that the Jagannath temple administration will withdraw the temple's fix deposits from Yes Bank after maturity. He went on to add that the funds will be shifted to a nationalised bank. Reportedly, Jagannath Temple in Puri has a deposit of over Rs 592 crore in the crisis-ridden Yes Bank.

READ: Yes Bank Crisis: The Red Flags That Indicated The Crisis Was Coming

Transfer of funds

"Fix deposits of the temple in the bank will mature on March 16 and 29. After that, the temple administration will withdraw money and put it in a nationalised bank. Bar on money withdrawal is for saving accounts only," he said.

The Finance Ministry has imposed a temporary moratorium on withdrawals from savings account till April 3. The withdrawal limit has been capped at Rs 50,000.

READ: Tirupati Temple Trust Withdrew Deposits Worth Rs.1300 Cr From Yes Bank Months Ago

The Ministry issued a circular on Thursday evening announcing the moratorium. It read, "In exercise of the powers conferred under 36ACA of the Banking Regulation Act 1949, the Reserve Bank has in consultation with Central Government, superseded the Board of Directors of Yes Bank Ltd for a period of 30 days owing to a serious deterioration in the financial position of the Bank.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. Shri Prashant Kumar, ex-DMD and CFO of State Bank of India has been appointed as the administrator under Section 36ACA (2) of the Act."

The 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. The apex bank has assured customers that their interest will be fully protected and they do not need to panic.

READ: Vadodara Municipal Corporation Withdrew Rs 265 Cr From Yes Bank In The Nick Of Time

The decision comes hours after it was reported that the Finance Ministry had approved State Bank of India to explore investment opportunities in the private bank. Yes Bank has been struggling to raise funds, with bad loans increasing. 

The RBI had taken over the Board of Yes Bank on March 5. 

READ: ED Raids Yes Bank Founder Rana Kapoor's House In Mumbai; PMLA Case Registered