On March 5, the Reserve Bank of India (RBI) have finally taken a decision on the future of private sector lender Yes Bank. RBI have imposed a one month long moratorium and restricting certain business transactions.
The question is now that how will the crisis at Yes Bank and RBI action impact its employees and clients now?
It will be very early to say anything about Yes Bank employees. In the event of distress mergers, there is a possibility that the acquiring entity may seek to cut cost and look at trimming overlapping functions in the target bank. This may involve letting some employees go. But there is no need to panic at this stage as the call is yet to be taken by the acquirer.
The central bank assured that these actions are being taken to protect the interests of depositors.
Despite the assurance, there has been some amount of panic visible among customers who, according to reports, had begun queuing up before ATMs to withdraw their money from March 5 itself.