The Reserve Bank of India (RBI) has given Yes Bank credit support of Rs 60,000 Crores as the troubled private lender resumed it’s full operation from 18th March 2020.
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The RBI Governor Shaktikanta Das said that if required the central bank would provide necessary liquidity support and this should come as a comforting factor for depositors.
Yes Bank would have to exhaust immediate liquid assets before accessing the fund.
Earlier, RBI has preferred to merge illiquid-insolvent banks, but since Yes Bank is solvent despite the liquidity issues the bank was allowed to continue. The last resort lender function provisions an LoC.
Government of India had notified a rescue plan for Yes Bank, led by State Bank of India (SBI) and joined by other lenders, as it looked to shield the banking sector from a widespread crisis.