There is still a hope for depositors- Yes Bank Fiasco

As Reserve Bank of India has imposted a moratorium on Yes Bank where they are restricting their users to withdraw more than INR 50,000 till 3rd April, 2020, people are starting comparing it with the banks which has become a failure such as Punjab and Maharashtra Co-operative bank.

However, these things are totally different and these two have also taken the measures to keep the small depositor’s interest in mind clearly.

According to an expert, Harsh Roongta, SEBI registered financial adviser- . “The government and RBI should work out a solution soon. The situation of PMC Bank and Yes Bank are different and not comparable. The government cannot afford to let such a large bank fail,”

Talking about the PMC bank, they had a deposits of more than 11 crore whereas if compare with YES bank, it is over 2 lakh crore. Also, the experts pointed the SBI communication to stock exchanges.

“These small depositors should not worry or act in desperation. Based on the developments, there should be a rescue plan for small depositors,” Roongta added.

Since the government has resitrcited people to withdraw more than INR 50,000 from their bank, they have also said that if there is an emergency, they should get the permission from The reserve bank of India. The finance ministry’s notification says- The Reserve Bank may by a general or special order, permit the said banking company to allow payment to its depositors an amount in excess of ₹50,000 to meet unforeseen expenses,”

Due to letting the people taking money for their emergency, the case is totally different from what it was earlier with some of the banks. People are waiting for the restriction to get removed at the earliest.