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Resource centre on India's rural distress
 
 

Why capping withdrawals from Yes Bank is a terrible idea - P Vaidyanathan Iyer

-The Indian Express

Capping withdrawals for Yes Bank depositors is foolish for two specific reasons, particularly when the economy is floundering with growth rates of around 5%.

On March 5, the RBI imposed a cap of Rs 50,000 on withdrawals by Yes Bank depositors. A day later, Finance Minister Nirmala Sitharaman assured depositors that their money was safe.

In the days and weeks running up to the RBI decision to supersede the Yes Bank board on March 5, certain high-value account holders withdrew funds from the bank, suggesting insider information.

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