YES Bank gets Rs 60k-cr line of credit from RBI to resume operations
The Reserve Bank of India (RBI) has extended a credit line of Rs
60,000 crore to YES Bank to
ensure that the bank is able to meet its obligations to depositors as it
resumed its full-service operations on Wednesday, according to sources familiar
with the development.
RBI Governor
Shaktikanta Das on Monday had said the regulator was ready to offer liquidity
if required.
“YES Bank has enough
liquidity to meet any requirements. If required, the RBI will provide necessary
liquidity support to it,” he said.
“Never in the
history of banks (in
India) have depositors lost money. The point is, depositors’ money is
absolutely safe,” Das had said in a conference, adding that the central bank’s
support should come as a “comforting factor for depositors”.
However, this is a case of the RBI being the
“lender of the last resort”, and, in accordance with the terms of the
arrangement, the bank will have to use its immediate liquid assets before it
can touch the credit line, sources said. This is perhaps for the first time
that the RBI has come with such an arrangement.
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