New Delhi: Days after the Reserve Bank of India (RBI) took control of the crisis-hit Yes Bank, in a late-night tweet the bank informed its customers that they can now withdraw money from ATMs with their debit cards.
The tweet came as a respite to thousands of Yes Bank customers who have been queuing up to withdraw their money from the bank after the Central Bank capped the withdrawal limit to Rs 50,000 per account per month. The RBI’s directive which came into effect from 6 am on Friday will be effective till April 3, 2020.
You can now make withdrawals using your YES BANK Debit Card both at YES BANK and other bank ATMs. Thanks for your patience. @RBI @FinMinIndia— YES BANK (@YESBANK) March 7, 2020
The Enforcement Directorate arrested Yes Bank founder Rana Kapoor under money laundering charges during the early hours of Sunday. The banker was apprehended under the provisions of the Prevention of Money Laundering Act (PMLA) around 3 am as he was allegedly not cooperating in the probe. The arrest was followed by 20 hours of questioning by the central agency after it raided his residence on Friday night.
The registered case against Kapoor is linked to the scam-hit DHFL as the loans lent by the bank to the company allegedly turned NPAs. The CBI recently took over the investigation into the Rs 2,267-crore EPF fraud in Uttar Pradesh, where savings of power sector employees were invested in DHFL. Meanwhile, the central agency is also probing Kapoor's role in connection with the disbursal of loans to some corporate entities and the subsequently alleged kickbacks reportedly received in his wife's accounts.
Henceforward, capital-starved Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment. And as per the RBI's draft reconstruction scheme, State Bank of India will pick up 49 per cent stake in the bank under a government-approved bailout plan.
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