Minister Uday Samant made the announcement after Shiv Sena MLC Maneesha Kayande raised the issue in the Legislative Council.
"The MU has kept deposits worth Rs 140 crore in YES Bank. The decision was taken earlier but we would like to correct it as soon as possible," she said.
Samant replied, "I will order Mumbai University as well as colleges and institutes to shift their accounts and deposits to public sector banks. The necessary orders will be issued soon."
The operations of YES Bank are being probed by the Enforcement Directorate and Central Bureau of Investigation and its founder Rana Kapoor has been arrested.