News of RBI imposing moratorium on Yes Bank is in full swing. RBI has imposed a moratorium on Yes Bank from March 5, 2020, to April 3, 2020. RBI has superseded the Board of Yes Bank with immediate effect and has limited capped withdrawals at Rs.50,000 per account till further notice. Former SBI Chief Financial officer Prashant Kumar as an administrator of Yes Bank.
What is Moratorium?
A moratorium is an act of stopping an activity for an agreed amount of time.
Why did RBI impose Moratorium on Yes Bank?
Yes Bank was unable to raise capital to address potential loan losses and was also facing serious governance issues and practices in recent years. Therefore RBI has imposed a moratorium on Yes Bank as it was not able to infuse capital and has seen a steady decline in the past two years.
Know about Yes Bank Moratorium in just 5 minutes, watch the below video. In this video, you will also know RBI conditions to allow withdrawal beyond the limit.