RBI Governor announces end of moratorium on  Wednesday; Yes Bank to resume full banking services
Photo: ReserveBankOfIndia/Twitter

Yes Bank depositors can withdraw their money from the evening of March 18, the Reserve Bank of India said on Monday.

Addressing a press conference on Monday, Governor Shaktikanta Das said that the moratorium that had been imposed on the crisis-hit bank earlier this month would be lifted on Wednesday at 6 pm.

Taking to Twitter Yes Bank too announced the same.

He also reassured that depositors need not worry because their money was "completely safe".

Defending the steps taken on Yes Bank and expressing confidence in getting the intended outcomes, Das said the identity of the bank will be retained as a private sector lender.

The Yes Bank crisis and the coronavirus notwithstanding, Das said that the banking system was in good health.

The RBI had imposed the moratorium on Yes Bank on March 5 in view of its poor financial health. This had restricted withdrawals to Rs 50,000 per depositor till April 3.

On Thursday, the SBI said that it would invest Rs 7,250 crore in Yes Bank, which is much higher than Rs 2,450 crore it had planned initially for 49 per cent stake in India's fourth-largest private sector bank.

The RBI governor, Shaktikanta Das, also assured to intervene with additional liquidity if there is a need.

Defending the steps taken on Yes Bank and expressing confidence in getting the intended outcomes, Das said the identity of the bank will be retained as a private sector lender.

Das also said that despite the crisis at Yes Bank and the rapidly evolving coronavirus pandemic on the economy and the banking system, the health of the banking system is good.

The RBI, he said, would be conducting another $ 2 billion swap on March 23, as well as launching another round of long-term repo operations worth Rs 1 lakh crore in June to counter the impact of the novel coronavirus. The governor opined that the viral outbreak would impact domestic as well global growth.

While many had expected a rate cut announcement, the RBI on Monday hinted at a rate cut at the next Monetary Policy Committee (MPC) meet on April 3.

"Rate cuts are done through MPC as per the Act, but I am not ruling out anything," said Das.

(With inputs from agencies)

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