A Gujarat firm withdrew Rs 265 crore hours before RBI restrictions on crisis hit Yes Bank

GUJARAT: On Friday before the Reserve Bank imposed a moratorium, Vadodara Smart City Development Company, a Special Purpose Vehicle (SPV) of the Vadodara Municipal Corporation (VMC), withdrew Rs 265 crore from Yes Bank.Chief executive officer Sudhir Patel of the Special Purpose Vehicle (SPV) and deputy municipal commissioner of the VMC, said the amount had been received from the Centre as part of a permit under the Smart City Mission and deposited with a local Yes Bank branch.He informed that it was withdrawn two days ago considering the problems faced by Yes Bank and later was transferred to a new account at Bank of Baroda.

As per reports, the government has come up with plan to save Yes bank from sinking.

For a fact, Andhra’s Tirumala temple trust withdrew Rs 1,300 cr from the bank in 2019

According to an official with the Tirumala Tirupati Devasthanam, deposits of Rs 1,300 crore were withdrawn some months ago from Yes Bank but it had nothing to do with the crisis in the bank.

A spokesperson of the temple body clarified that on the maturity of the deposit term the money was withdrawn in October. “We have officials who monitor deposits in banks and the maturity periods. It’s not that we suddenly withdrew the amount,” he said.

The Reserve Bank of India (RBI) on Thursday replaced the Yes Bank Board for 30 days and appointed an administrator, putting a limit of Rs 50,000 on withdrawal by account holders for a month. The RBI took the decision”owing to a serious deterioration in the financial position of the Bank.”

The Reserve Bank of India had also put out the draft of a revival scheme for Yes Bank, which has been put under the control of the central bank.

India’s biggest bank SBI has expressed its willingness to make an investment in Yes Bank and participate in its reconstruction scheme, the RBI said.

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