BackRBI to extend ₹10,000 crore under special liquidity facility
The 90-day loan will be offered at the current Bank Rate of 5.4% plus 3% to meet the immediate liquidity needsIn 2004, RBI had given a loan of ₹463 under the similar facility to the troubled Global Trust Bank
PremiumMumbai: The Reserve Bank of India has decided to extend a loan of ₹10,000 crore immediately under the special liquidity facilty to Yes Bank against government securities, according to two people familiar with the matter, who spoke on conditions of anonymity.
The 90-day loan will be offered at the current Bank Rate of 5.4% plus 3% to meet the immediate liquidity needs of the bank. Under the special liquidity facility, RBI gives loan against eligible securities to financial institutions under emergency.
In 2004 RBI had given a loan of ₹463 under the similar facility to the troubled Global Trust Bank before it was merged with Oriental Bank of Commerce.
The decision to extend a loan comes alongside the RBI's move to supersede the board of Yes Bank and announce a draft reconstruction scheme for the private sector lenders. Under the scheme, State bank of India will invest up to 49% stake in the bank’s expanded capital. Such a move would end up making Yes Bank, placed under RBI control on Thursday, one of the subsidiaries of SBI, the country’s largest lender.
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