Letter to BS: RBI move to cap YES Bank withdrawal limit a bad decision

While roping in the State Bank of India (SBI) was a laudable and timely move to help the fund-starved bank, putting a restriction on withdrawal has done enormous harm to the economy, market sentiments and lastly, Yes Bank itself.

One thing which can't be denied is the investor confidence in Yes Bank —reflected from the huge deposits the bank has and the 67 per cent equity that it put in the hands of retail investors. It is here that the restriction on withdrawal will hit the bank badly. Account holders have become wary and belated assurances that their money is safe