The moratorium on crisis-hit Yes Bank imposed early this month will be lifted on Wednesday at 6 pm, said Reserve Bank of India (RBI) Governor Shaktikanta Das on Monday.
Das assured depositors that their money is “completely safe and there is nothing to worry.”
“Swift action has been taken by the RBI and the Government of India. The lifting of moratorium will be on Wednesday, 18th March at 6 pm,” said Das.
“I would like to convey to the depositors of Yes Bank, through you, that their money is completely safe and there is nothing to worry. There is no reason for any undue worry,” he added.
The Reserve Bank of India (RBI) will conduct another six months US dollar/rupee sell-buy swap on March 23 to ensure that financial markets are sound and resilient amid coronavirus (COVID-19), said Das.
“The RBI has been taking calibrated measures to stabilise financial markets. COVID-19 pandemic is a human tragedy. Financial markets are witnessing volatility. Efforts are being mounted against COVID-19 on a war footing,” said Das.
The decision on interest rate cut will be taken by RBI’s monetary policy committee (MPC) in the next meeting scheduled for March 31 to April 3, he added.
Das said the global economy is expected to witness a slowdown with growth rate declining between 0.4 to 1.5%. India is relatively insulated from global value chain, but there will be some impact. “We are estimating the impact of COVID-19 and we will give our growth estimates in the MPC.”
“The RBI has several instruments at its command and stands ready to take all necessary measures to mitigate the impact of COVID-19 on the Indian economy,” said Das.
On March 12, SBI said that it would invest Rs 7,250 crore in Yes Bank, which is much higher than Rs 2,450 crore it had planned earlier.
On March 5, the Central Bank imposed a moratorium on Yes Bank, restricting withdrawals to Rs 50,000 per depositor till April 3 due to poor financial health.
(With Agency Inputs)