The Reserve Bank on Thursday imposed a moratorium on the capital-starved Yes Bank and capped withdrawals at Rs 50,000 per account till further orders.
The board of Yes Bank has also been superseded withimmediate effect, the Reserve Bank of India (RBI) said in a late eveningstatement.
Former SBI CFO Prashant Kumar has been appointed asadministrator for Yes Bank.
The latest development comes six months after the regulatordid the same with the city-based cooperative lender PMC Bank after a large scamwas unearthed.
Yes Bank has been grappling with mounting bad loans.
Earlier in the day, sources said SBI along with some otherfinancial institutions would bail out Yes Bank, with the government giving thego-ahead.
Conditions for depositors to withdraw more than Rs 50,000
In connection with the medical treatment
Towards the cost of higher education of the dependent
To pay obligatory expenses in connection with marriage orother ceremonies
In connection with any other unavoidable emergency.