14:48 GMT16 July 2020
Listen Live
    India
    Get short URL
    0 0 0
    Subscribe

    New Delhi (Sputnik): The Reserve Bank of India (RBI), the Indian banking regulator, took over the management of the Punjab and Maharashtra Cooperative Bank last year following allegations of widespread financial irregularities. Two charge sheets have been filed by investigative agencies in matters pertaining to high-level corruption in the bank.

    Superseding the board of an Indian private sector bank - Yes Bank - on account of a deterioration of its financial health, the country's banking regulator RBI late on Thursday evening imposed a cap on withdrawals for depositors of the bank.

    “The Reserve Bank has, in consultation with Central Government, superseded the Board of Directors of Yes Bank Ltd for a period of 30 days owing to serious deterioration in the financial position of the Bank”, the Reserve Bank of India (RBI) announced through a statement.

    This has been done to quickly restore depositors’ confidence in the bank, including by putting in place a scheme for reconstruction or amalgamation, the banking regulator added.

    Meanwhile, the depositors of the bank will not be able to withdraw more than INR 50,000 ($704.22) between 5 March and 3 April, according to an Indian Ministry of Finance notification. 

    The bank, headquartered in Mumbai – India’s financial hub – had been facing trouble on the quality of its asserts, with a lot of bad loans causing stress in its balance sheet. Of late, the bank had been trying to find investors to shore up its capital base, but in vain.

    Related:

    Bank Fraud Worth $13.68 Billion Reported in India, Finance Minister Reveals
    People Queue Outside Karnataka Local Bank as India’s Apex Bank Imposes Restrictions
    India Budget 2020: Common Man Gets Lower Tax Slab Option, Higher Insurance on Bank Deposits
    Tags:
    Mumbai, Delhi, Reserve Bank of India, finance, bank
    Community standardsDiscussion