RBI has a new 'scheme' to rescue Yes Bank — will be released shortly, says Shaktikanta Das

• The Reserve Bank of India (RBI) has a new ‘scheme’ to revive Yes Bank.
  
• RBI governor Shaktikanta Das told reporters that it will be unveiled ‘shortly’.
  
• He added that the one-month time period is the outer limit of the time required for RBI’s plan to be successful.
• Shortly after the announcement, former deputy MD and CFO of State Bank of India Prashant Kumar took charge as YES Bank's administrator.
  

The Yes Bank crisis continued to unravel as Reserve Bank of India (RBI) governor, Shaktikanta Das, told the press that a new ‘scheme’ is on the cards to rescue the private bank. It will be unveiled ‘shortly’.

After issuing a one-month moratorium last night which limits withdrawals from Yes Bank to ₹50,000, Das claims that the country’s top bank has a market-based plan to revive the troubled bank.

“We naturally have a market-based resolution of the problem. A bank-led or investor-led resolution of a problem is preferable,” he told reporters. According to him, the one-month time limit will be more than enough for RBI to implement its plan.

“It will be done very swiftly, it will be done very fast. 30 days, which we have given, is the outer limit,” he said.

Shortly after the announcement, former deputy MD and CFO of State Bank of India Prashant Kumar took charge as YES Bank's administrator.

The issue of RBI’s timing
Some have criticised the RBI for taking too long to come to Yes Bank’s aid, however, Das claims that the RBI’s timing is appropriate.

“There is always a question why RBI asked prematurely, or why it took so long… When we found that we should not wait any longer, RBI decided to intervene. Therefore, I think the timing is quite appropriate,” he said.

“You have to give time to the bank, to the management to whatever steps or efforts they need to take. The bank did try over the last several,” he added.

Yes Bank’s shares plummeted today morning when markets opened reacting to the news of the moratorium. India’s largest bank State Bank of India (SBI) said that it has ‘in-principle approval’ from the board to invest in the private bank.

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See also:
RBI may have to bail out Yes Bank if it fails to raise $2 billion by March 14

Yes Bank share price falls 25% after RBI limits withdrawals