New Delhi: The Reserve Bank on Thursday imposed a moratorium on troubled lender Yes Bank and capped withdrawals at Rs 50,000, sources said.
The board of Yes Bank has also been superseded with immediate effect, the Reserve Bank of India (RBI) said in a late evening statement.
Former SBI CFO Prashant Kumar has been appointed as administrator for Yes Bank.
#BreakingNews | RBI on Yes Bank: #RBI has in consultation with Central Government, superseded the Board of Directors of Yes Bank for a period of 30 days pic.twitter.com/LGQVucflhS
— CNBC-TV18 (@CNBCTV18Live) March 5, 2020
The latest development comes six months after the regulator did the same with the city-based cooperative lender PMC Bank after a large scam was unearthed.
Yes Bank has been grappling with mounting bad loans.
Earlier in the day, sources said SBI along with some other financial institutions would bail out Yes Bank, with the government giving the go-ahead.