YES Bank depositors rush to ATMs but most unable to withdraw cash

Harried YES Bank depositors rushed to ATMs to withdraw cash but faced a multitude of problems, including closed down machines and long queues, after the RBI placed the bank under a moratorium, capping maximum withdrawals at Rs 50,000 per account for a month.

Aggravating the problems of depositors were difficulties accessing the internet banking channel, which ensured that they can't transfer the funds online as well.

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The shutters were pulled down at an ATM in South Mumbai's Horniman Circle, near the RBI headquarters.

The guard on duty said the machine was non-operational before he reported to work late in the evening and he was ordered to shut it after 2200 hrs.

In the residential area of suburban Chembur, one ATM was dispensing cash but had a long queue of anxious depositors.

One man said it was still possible to withdraw up to Rs 50,000 in multiple transactions from the machine.

However, another machine nearby had run dry within minutes of the RBI announcement, a woman said.

The regulatory actions, undertaken by the RBI and the government, came hours after finance ministry sources confirmed that SBI was directed to bail out the troubled lender.

The RBI also superseded the board of YES Bank, which has not been able to raise required capital for the last six months. It also appointed former SBI CFO Prashant Kumar as the administrator of YES Bank.

"Since a bank and market-led revival is a preferred option over a regulatory restructuring, the Reserve Bank made all efforts to facilitate such a process and gave adequate opportunity to the bank's management to draw up a credible revival plan, which did not materialise," the statement said.

In the meantime, the bank was facing regular outflow of liquidity, the apex bank said, justifying its actions.

(Disclaimer: Additional background information has been added to this PTI copy for context)