InvestorQ : Why did the RBI have to push Yes Bank into moratorium? Was it really that urgent or could RBI have waited some more time?
sarah Leo made post

Why did the RBI have to push Yes Bank into moratorium? Was it really that urgent or could RBI have waited some more time?

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vidhya Laxmi answered.
10 months ago
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On 06th March, Yes Bank was officially placed under administration by RBI. In a way, this is the end of Yes Bank as we know it. Was the moratorium justified; that is a question we will not know but it is best left to the discretion of RBI as the banking regulator. The decision of RBI to push Yes Bank into moratorium was never in doubt. It was more question of when rather than whether? Yes Bank had loan exposures to most of the troubled companies including Reliance ADAG, DHFL, Jet Airways, IL&FS, McLeod Russell and Cox and Kings. With most of these companies either bankrupt or on the verge of bankruptcy, the loans were virtually irrecoverable. The only thing Yes Bank could do was to raise $2 billion urgently. However, the assurances from Ravneet Gill turned out to be deceptive. Under these circumstances only an administrator with a freeze on the books could have saved the interests of depositors.

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