RBI supersedes board of Yes Bank, caps withdrawals at Rs 50,000

The Reserve Bank of India replaced the Board of Directors of Yes Bank and imposed a moratorium for a month as its financials deteriorated, but has promised to come up with a credible restructuring plan in the next few days that may involve merging it with another lender. The private sector lender has been grappling with mounting bad loans. It also appointed former SBI CFO Prashant Kumar as administrator for the bank. Meanwhile,Depositors can pull out a maximum of Rs. 50,000 per head even if an individual has more number of accounts, a government gazette notification said. The outstanding amounts on drafts and pay orders issued so far would be paid in full, it said.