Govt limits 50000 withdrawal from yes bank

Unthinkable has happened. Stupid Modi Govt finally restricted depositors of yesbank to withdraw amount upto 50k, without seeking RBI’s approval. That’s why they made an IAS as a governor. Shame.
https://m.economictimes.com/industry/banking/fi...
Edit: update http://egazette.nic.in/WriteReadData/2020/2165....
Edit:
MINISTRY OF FINANCE
(Department of Financial Services)
(BANKING DIVISION)
NOTIFICATION
New Delhi, the 5th March, 2020
S.O. 993(E).—In exercise of the powers conferred by sub-section (2) of section 45 of the
Banking Regulation Act, 1949 (10 of 1949), the Central Government, after considering an application
made by the Reserve Bank of India under sub-section (1) of that section, hereby makes an Order of
Moratorium in respect of the Yes Bank Limited, Mumbai, Maharashtra for the period from 18:00 hrs on
March 5, 2020 up to and inclusive of April 3, 2020 and hereby stays the commencement or continuance
of all actions and proceedings against that banking company during the period of moratorium, subject to
the condition that such stay shall not in any manner prejudice the exercise by the Central Government of
its powers under clause (b) of sub-section (4) of section 35 of the said Act or the exercise by the Reserve
Bank of India of its powers under section 38 of the said Act.
2. The Central Government hereby also directs that during the period of moratorium, the Yes Bank
Limited, Mumbai, Maharashtra (the said banking company) shall not, without the permission in writing of
the Reserve Bank of India,—
(a) make, in the aggregate, payment to a depositor of a sum exceeding Rs. 50,000/- (Rupees fifty
thousand only) lying to his credit, in any savings, current or any other deposit account, by
whatever name called:
Provided that if a depositor maintains more than one account in the same capacity and in the
same right, the total amount payable from all the accounts together shall not exceed the limit
indicated above:
Provided further that wherever such depositor is having dues payable to the bank in any manner,
either as a borrower or surety, the amount payable to such depositor shall be made after
adjusting the relevant borrowal accounts;
(b) make, in the aggregate, payment to any creditor exceeding a sum of Rs. 50,000/- (Rupees fifty
thousand only) if not otherwise provided in this order, so however that this shall not affect
making of payment of amounts towards any drafts or pay orders issued by the said banking
company and remaining unpaid on the date on which the order of moratorium comes into force,
or in paying the proceeds of the bills received for collection on or before the 5th March, 2020.
3. Without prejudice to the conditions stipulated in paragraph 2(a) of this Order in relation to
payment to any depositor of the said banking company, the Reserve Bank may by a general or special
order, permit the said banking company to allow payment to its depositors an amount in excess of
Rs. 50,000/- (Rupees fifty thousand only) to meet unforeseen expenses, as under:
(i) in connection with the medical treatment of the depositor or any person actually dependent on
him;
(ii) towards the cost of higher education of the depositor or any person actually dependent on him
for education in India or outside India;
(iii) to pay obligatory expenses in connection with marriage or other ceremonies of the depositor or
his children or of any other person actually dependent upon him;
(iv) in connection with any other unavoidable emergency:
Provided that the amount so allowed to be paid out of the balance lying to the credit of the depositor—
(a) shall be reckoned towards the payment due to him under any scheme of reconstruction or
amalgamation as may be sanctioned by any competent authority in relation to the said
banking company and subject to such conditions as may be provided under such scheme
about appropriation of any payment made to a depositor of the said banking company before
or on the coming into force of the scheme; and
(b) shall not exceed the sum of Rs. 5,00,000/- (Rupees five lakh only) or the actual balance
lying to the credit of the account of such depositor, whichever is less.
4. The Central Government hereby also directs that the banking company may, during the period of
the moratorium imposed on it, make the following further payments, namely, the amounts for repaying
loans or advances granted against Government securities or other securities, to the banking company by
the Reserve Bank of India or the State Bank of India or by any other bank and remaining unpaid on the
date on which this Order comes into force.
5. The Central Government hereby further directs that during the period of moratorium, the Yes Bank
Limited shall be permitted to operate its accounts with the Reserve Bank of India or with any other bank
for the purpose of making the payments aforesaid, provided that nothing in this Order shall be deemed to
require the Reserve Bank of India or any other bank aforesaid to satisfy itself that the conditions imposed
by this Order are being observed before any amounts are released in favour of the Yes Bank Limited.
6. The Central Government hereby also directs that the Yes Bank Limited may release or deliver goods
or securities which have been pledged, hypothecated or mortgaged or otherwise charged to it against any
loan, cash credit or overdraft:
(i) in any case in which full payment towards all the amounts due from the borrower or borrowers,
as the case may be, has been received by it, unconditionally; and
(ii) in any other case, to such an extent as may be necessary or possible, without reducing the
proportions of the margins on the said goods or securities below the stipulated proportions or the
proportions which were maintained before this Order came into force, whichever may be higher.
[F. No. 7/19/2020-BOA-1]
AMIT AGRAWAL, Jt. Secy.