Reserve Bank of India (RBI) has imposed withdrawal limit of 50k and put it under moratorium because of a ‘serious deterioration in Yes Bank’s financial position’ for a period of 30 days. People’s account associated with the bank will able to withdraw Rs 50,000 till one month. Shares of Yes Bank, fell down to a historic low of Rs.5.65 on Friday.  The record fall of the share crushed 79.43 billion rupees from Yes Bank’s market value.

The RBI has now appointed State Bank of India (SBI), one of India’s largest lender, to lead a consortium that will also fuel fresh new capital into Yes Bank. The SBI too agreed on the matter to conduct a viability assessment in order to buy stake in Yes Bank. The government has asked the RBI to assess Yes Bank and get to the root of the problem. After the reports circulated that SBI would inject fresh new capital, shares of Yes Bank saw rise of about 25%.

Maharashtra: People queue up outside Yes Bank's Fort Branch in Mumbai. The bank was placed under moratorium by Reserve Bank of India (RBI) and the withdrawal limit was capped at Rs 50,000, yesterday. pic.twitter.com/SEUglndblM

— ANI (@ANI) March 6, 2020

A panic was observed in account holders when received the news that RBI has imposed withdrawal limit of Rs.50000 only per account per month. In a result, many people were seen outside ATM to withdraw their saved money from their account. But, Finance Minister Nirmala Sithraman has assured the depositors that there will be no loss to any Yes Bank account holders. She addressed the media and told that solution is being worked upon where she is closely monitoring the whole process herself.

@YESBANK news: FM @nsitharaman explains crisis, assures depositors.#NirmalaSitharaman #YesBank #yesbankcrisis
Link: https://t.co/WjfzPIScpn pic.twitter.com/nryVmZFD9I

— Business Today (@BT_India) March 6, 2020

Assuring that everything will be fine, SBI chairman #RajnishKumar said the depositors of #YesBank need not panic and asked them to be patient. #yesbankcrisis https://t.co/hY9cG7vzTE

— The New Indian Express (@NewIndianXpress) March 6, 2020