Yes Bank resolution will be done very swiftly; 30 days outer limit: RBI governor

Defending the timing of Yes Bank's moratorium, Reserve Bank of India governor, Shaktikanta Das, today, assured swift resolution to the issues, concerning the beleaguered lender.

The governor said the resolution work of Yes Bank will be done very swiftly well ahead of the 30 days deadline. You will see very swift action from RBI," told reporters after ASSOCHAM's 15th annual banking summit.

He also said, the decision on Yes Bank was taken at a larger level, not only to deal with the problem in an individual entity but also to maintain stability and resilience of the Indian financial and banking sector. The governor assured that the Indian banking sector continues to be sound and safe adding that RBI was ready to effectively deal with the challenge ahead.

When asked about the timing of the action on Yes Bank, Mr Das said there is always debate over RBI acting prematurely or taking too long to act. Then he added, "A market-led and bank-led resolution of the problem is always preferable. You have to give time to the bank management to take step and efforts. And the bank did take efforts. When we found that we cannot wait and should not wait any longer, we decided to intervene," Das added.

Besides, the Finance Minister, Nirmala Sitharaman, today, assured cash-starved Yes Bank depositors that their money is safe and the RBI is working on an early resolution of the issue.

Finance Minister said she is in continuous interaction with the Reserve Bank of India. The central bank is fully seized of the matter and has assured they will give a quick resolution. She said the steps taken are in the interest of depositors, banks and the economy.

In addition, Chief Economic Adviser Krishnamurthy Subramanian today said that all options are under consideration for restructuring Yes Bank and assured that depositors' money is safe.

Talking to reporters in New Delhi today, he said, government and the RBI are working together for the best possible solution. Mr Subramanian said, the RBI has taken right steps. He said the interest of Yes Bank customers will be protected.

Earlier on March 5, 2020, Yes Bank was placed under a moratorium and RBI capped deposit withdrawals at Rs 50,000 per account for a month. It also superseded its board.

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.