Jagannath Temple’s Rs 592 cr deposit to be put in govt bank: Minister

New Delhi: Amid growing worries among depositors after the RBI capped withdrawal limit from crisis-hit Yes Bank, Odisha Minister Pratap Jena has said that Jagannath Temple’s Rs 592 crore fixed deposits with the bank would be put in a nationalised bank after they mature this month.

The statement has come in the wake of the near collapse of the private lender raising doubts, if the depositors’ money in the bank was safe.

Jena on Friday said that fixed deposits of the temple, one of the richest in the country, will mature on March 16 and March 19. Following this, the money will be pulled out and kept in a public sector bank.

The Minister stated that the RBI restriction on withdrawal of money from Yes Bank is for savings account holders.

In what one may term timely “divine intervention”, the Tirumala Tirupati Devastanam (TTD) had withdrawn all its deposits of Rs 1,300 crore from the trouble private bank.

TTD board Chairman Y.V. Subba Reddy has claimed that the shrine board had taken the decision as it foresaw the collapse of the bank after going through its performance reports.

The Board had informed Andhra Pradesh Chief Minister Y.S. Jaganmohan Reddy about the decision a few months back.

In the light of fast deteriorating financial position of Yes Bank, the banking regulator RBI on March 5 superseded its board and placed withdrawal restrictions capping withdrawals at Rs 50,000 per account till April 3, 2020.

Moody’s Investors Service on Friday said that RBI putting moratorium on Yes Bank is a credit negative for the private sector lender.

Meanwhile, the RBI has drafted a revival plan for Yes Bank. The government has nudged public sector SBI to lead a consortium to take control of the falling bank.

IANS