RBI extends Rs 50,000 crore Liquidity Window by 3 Months to Yes Bank

Published on June 24, 2020
Current Context: The Reserve Bank of India has extended a special liquidity window of Rs 50,000 crore by another three months to the private sector Yes bank.
RBI extends Rs 50,000 crore Liquidity Window by 3 Months to Yes Bank

  • The decision was taken in order to avoid a shortfall in deposits to be faced by the bank.
  • Therefore, now the Yes Bank can access Rs 50,000 crore liquidity window if the outflow of deposits exceeds the accretion of fresh deposits.
  • Initially, Yes Bank was provided with special liquidity window in the month of March for three months, which ended in June.
  • The RBI has made emergency credit line of nearly Rs 600 billion available when Yes Bank was under a moratorium that restricted deposit withdrawal at Rs 50,000 crore.
  • Therefore now this extension allowed by RBI on Yes bank will help Yes Bank to meet regulatory requirement and fund its growth.
  • Static Part: 
    • HQ of RBI: Mumbai
    • Governor of RBI: Shaktikanta Das
    • HQ of Yes Bank: Mumbai
    • Tagline of Yes Bank: Experience our expertise
    • MD and CEO of Yes Bank: Prashant Kumar

Question: 

Q.1 The Reserve Bank of India has extended a special liquidity window of Rs ______ by another three months to the private sector Yes Bank?
a. Rs 40,000 crore
b. Rs 50,000 crore
c. Rs 45,000 crore
d. Rs 55,000 crore

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