'Personally monitoring Yes Bank situation, depositors' money safe': FM Sitharaman

Issuing her first statement on the Yes Bank crisis, Finance Minister Nirmala Sitharaman on Friday said assured the depositors that all their money is safe. She said that the is in constant touch with the Reserve Bank of India and a resolution will be found soon. The Finance Minister added that she has been personally monitoring the situation for the past couple of months along with the RBI.

'Their money is safe'

Speaking to the reporters outside Parliament, the FM Sitharaman said, "I am in continuous interaction with the RBI. The RBI has assured that they will give a quick resolution. I also want to assure every depositor that their money shall be safe. Their money is safe. I am constantly in touch with the Reserve Bank and the steps they have taken are in the interest of the depositors, the bank and the economy."

She added, "We are fully aware of the developments so I repeat that the depositors can be assured that their money is safe. RBI Governor has assured of a quick resolution. Can't give details of resolution plan now. We are looking for a solution. I have personally been monitoring the situation over the past couple of months along with the RBI. We will make special provisions for the depositors who are in urgent need of money just like we did during the PMC Bank crisis."

"The immediate priority of the government is to ensure Yes Bank customers are able to withdraw money within Rs 50,000 cap," she added. The RBI on Thursday capped deposit withdrawals at the bank at Rs 50,000 per account for a month and superseded its board. Following this, 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 during the period.

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In a statement late on Thursday, the regulator said it was forced to step in after Yes Bank’s latest effort to raise new capital failed to materialize and as the lender “was facing regular outflow of liquidity."

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