After PMC, RBI clamps withdrawal limit on Yes Bank: The case so far

Updated: Mar 12, 2020, 13:13 | Sherlin Rajan
  • Yes Bank crisis

    Reserve Bank of India (RBI) on March 5 imposed a month-long moratorium on Yes Bank citing "serious deterioration in its financial position", capping the withdrawal limit at Rs 50,000. The move saw customers rushing to ATMs to withdraw their cash. Many customers claimed that the bank had not given any prior information about it while many rued that the ATMs have run out of cash.

  • Yes Bank crisis

    During the period of moratorium, which is till April 3, the Yes Bank Limited shall not, without the permission in writing of the Reserve Bank of India, make, in the aggregate, payment to a depositor of a sum exceeding Rs. 50,000 lying to his credit, in any savings, current or any other deposit account.

  • Yes Bank crisis

    The RBI, in a statement, said, "The financial position of Yes Bank Ltd. (the bank) has undergone a steady decline largely due to inability of the bank to raise capital to address potential loan losses and resultant downgrades, triggering invocation of bond covenants by investors, and withdrawal of deposits. The bank has also experienced serious governance issues and practices in the recent years which have led to steady decline of the bank. The Reserve Bank has been in constant engagement with the bank's management to find ways to strengthen its balance sheet and liquidity." 

  • Yes Bank crisis

    A few hours after the RBI imposed the action on the Yes Bank, the government gave a go-ahead to State Bank of India and other financial institutions to take over the bank. Yes Bank, which is grappling with bad loans, was looking to raise fresh capital but the plans are facing uncertainties. It also delayed the announcement of December 2019 quarter results due to the ongoing crisis.

  • Yes Bank crisis

    On March 7, Yes Bank founder Rana Kapoor was taken to Enforcement Directorate (ED) office for questioning after raiding his residence located at 'Samudra Mahal' residential tower in Mumbai on March 6. A case was registered against him under the Prevention of Money Laundering Act (PMLA)

  • Yes Bank crisis

    The interests of Yes Bank depositors will be protected and the Reserve Bank of India (RBI) will soon put in place a mechanism to revive the capital-starved public sector lender, the government said on March 6. 

  • Yes Bank crisis

    Meanwhile, RBI Governor Shaktikanta Das said that there will be a swift action from the central bank to put in place a scheme to revive Yes Bank. "The 30 days which we have given is the outer limit. You will see very swift action from the RBI to put in place a scheme to revive. A market-based resolution of the problem, a bank-laid, investor- laid resolution of the problem is always preferable," he said.

  • Yes Bank crisis

    Chairman of State Bank of the India Rajnish Kumar said on March 7 that their legal team started due diligence as the public sector lender prepares to infuse Rs 2,450 crore to pick 49 per cent stake in the troubled private sector Yes Bank after being placed under administration by the Reserve Bank of India.

  • Yes Bank crisis

    Giving an assurance that the depositor's money is safe, Kumar addressed a press conference, saying, "The plan has been received by SBI and the legal team is working on the plan 24 x 7. We had informed through the stock exchange that SBI board has given in-principle approval of exploring the possibility of picking up a stake of up to 49 per cent in Yes Bank."

  • Yes Bank crisis

    SBI will not reduce its holding below 26 per cent before completion of three years from the date of infusion of capital, according to the reconstruction plan. Kumar also said the interests of SBI shareholders will not be compromised and there will be no impact on the bank's capital adequacy ratio. He said a new board of Yes Bank will be constituted with two nominees from SBI.

    Meanwhile, Yes Bank announced on March 6 that it has partially restored their NEFT and IMPS services, adding that customer can withdraw their cash from ATMs.

  • Yes Bank crisis

    The Enforcement Directorate arrested Yes Bank founder Rana Kapoor under money laundering charges, officials said on March 8. The banker was held under the provision of the Prevention of Money Laundering Act (PMLA) around 3 am as he was allegedly not cooperating in the probe, they said. Kapoor's arrest at the ED office in Ballard Estate followed over 20 hours of questioning by the central agency after it raided his residence on the night of March 6. The arrest comes after charges of alleged financial irregularities and mismanagement in the operations of the private bank surfaced and the RBI and Union government initiated action to control its affairs.

  • Yes Bank crisis

    The CBI has begun a probe into the Yes Bank affairs as officials started collecting documents in the matter, sources said on March 8. According to them, the officials have refused to offer comments on the development as the probe agency wants complete secrecy before any search that it might be planning. The sources refused to elaborate on the nature of the probe -- preliminary enquiry or an FIR -- or people arraigned but affirmed that a formal investigation has begun.

  • Yes Bank crisis

    Yes Bank founder Rana Kapoor, arrested under money laundering charges, was remanded in the Enforcement Directorate's custody till March 11 by a Mumbai court on March 8. The ED produced Kapoor before a holiday court which remanded him in the probe agency's custody till March 11. The ED told the court that the role of some companies run by Kapoor's family members needs to be established and they need to confront all these people with the accused.

  • Yes Bank crisis

    On the evening on March 8, Rana Kapoor's daughter Roshni, who was headed to London by the British Airways, was stopped from leaving the country at the Mumbai Airport.  The CBI issued a look out circular against seven accused in the Yes Bank scam, including its co-founder Rana Kapoor and his family members on March 9, to prevent them from leaving the country, officials said.The agency has booked Kapoor, his wife Bindu and daughters Roshini, Raakhe and Radha, besides DHFL promoter Kapil Wadhawan and Dheeraj Wadhawan, promoter of RKW Developers. (Picture/Yes Bank-Facebook)

  • Yes Bank crisis

    The CBI conducted searches at DHFL office, the office of Doit Urban Ventures (India) Pvt Ltd, the office of RKW Developers Pvt Ltd, the residence of Rana Kapoor in Worli, the residence of Kapil Wadhawan in Bandra West, Rana Kapoor's daughters Rakhi Kapoor Tandon's & Radha Kapoor Khanna's residences on March 9. 

  • Yes Bank crisis

    Amidst the probe, The Enforcement Directorate (ED) on March 9 seized a painting bought by Yes Bank founder Rana Kapoor from Priyanka Gandhi Vadra. A letter written by Priyanka Gandhi to Kapoor in June 2010 confirmed the sale of the portrait of former prime minister Rajiv Gandhi for Rs 2 crore. The painting has been brought to the ED office. Sources said that Priyanka Gandhi wrote a letter on June 4, 2010, in which she had acknowledged payment of Rs 2 crore as "the full and final payment towards subject painting".

  • Yes Bank crisis

    The ED is looking into more multi-crore rupees loans issued by Yes Bank to corporate houses that turned non-performing assets as part of its money laundering investigation against its arrested promoter Rana Kapoor, officials said on March 9. They said the agency has widened its probe in the case beyond the loan to DHFL and is now looking at its books to find out evidence if alleged kickbacks were received by the Kapoor family and others from business houses in lieu of non- initiation of loan recovery processes.

  • Yes Bank crisis

    Meanwhile, the bank is hopeful of the moratorium being lifted by this Saturday, its RBI-appointed administrator Prashant Kumar said on March 9. He told PTI that the final approval from the Reserve Bank to the SBI-led resolution plan would result in Yes Bank coming out of the moratorium. Kumar also made it clear that the lifting of the restrictions does not hinge on capital raising plan.

    On March 11, A special court extended till March 16 the Enforcement Directorate (ED)
    custody of Rana Kapoor. The founder of Yes Bank, while talking to the media, blamed the present management of the bank for its downfall, even as the ED told the special Preventionof Money Laundering Act (PMLA) court that he had sanctioned loans worth Rs 30,000 crore to different entities during his tenure as its head.

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About The Gallery

A few months after account holders of PMC Bank got a rude shock with RBI placing withdrawal limits, Yes Bank suffered the same fate. On March 5, account holders were in for a shock when they learnt of the RBI placing withdrawal limits upto Rs 50,000 on the accounts. Here are the developments of the case. (All pictures/ PTI)