Yes Bank Saga: Angry Customers Queue up at Yes Bank for Cash

New Delhi: A day after RBI put a cap on withdrawal from Yes Bank, distressed and angry customers of the crisis-hit lender make a queue up outside scores of branches and ATMs in many parts of the country specially Mumbai, Thane, Pune, Nagpur where its footfall is larger on Friday to withdraw money after the RBI imposed cap on withdrawal.

Panicky customers rushed to the ATMs since late Thursday for withdrawals but many soon became dry, leaving them frustrated.

Mumbaikars are particularly peeved as the RBI orders came just before popular Holi festival on Monday, followed by Gudi Padva when cash in hand is a necessity.

The RBI action follows the lender’s inability to raise funds that would have helped it provide against loan losses. Prashant Kumar, former deputy managing director at State Bank of IndiaNSE -6.03 % (SBI), will be the administrator of Yes Bank, RBI said.

Depositors will be restricted to a maximum withdrawal of Rs 50,000 even if they have multiple accounts, a government gazette notification said. RBI will relax the withdrawal limit in the event of medical emergencies, higher education fees or marriage expenses — up to a cap of Rs 5 lakh. Drafts and pay orders issued so far will be paid in full, it said.