InvestorQ : How will the RBI ensure that Yes bank depositors are protected? Will SBI give an assurance to that effect?
sarah Leo made post

How will the RBI ensure that Yes bank depositors are protected? Will SBI give an assurance to that effect?

Answer
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vidhya Laxmi answered.
6 months ago


The assurance that deposit interests will be protected has been given by the RBI and the Finance Minister. It is authentic as it can get. In fact, the government must be congratulated for ensuring that customer confidence in the Indian banking system does not suffer. This was done via an assurance from the Finance Minister that deposits would be fully protected. In the midst of the global slowdown and the virus fears, the least the government wanted was a run on ATMs. The limit of Rs.50,000 for a month may look unfair but people should be happy that they will not lose their deposits. A lot will now depend on how quickly the bailout is executed. By getting SBI to infuse Rs.2500 crore into the capital of Yes Bank, it gives the capital comfort and the reassurance of an SBI backing Yes Bank. I think, depositors will now be able to breathe easy.