RBI extends Rs 60,000-cr credit line to Yes Bank

To tide over liquidity issue, the Reserve Bank of India (RBI) has extended Rs 60,000-crore credit line to Yes Bank so that it meets obligation of depositors, sources said.

This is in line with assurance given by RBI Governor Shaktikanta Das on Monday saying the regulator was ready to offer liquidity if required after lifting of moratorium.

"I would like to mention that Yes Bank has enough liquidity to meet any requirement. If there is a requirement, the RBI will provide necessary liquidity support," he had said.

"Never in the history of banks (in India) have depositors lost money. The point is, depositors' money is absolutely safe," Das also said.

As per Section 17 of RBI Act 1934, the central bank can provide liquidity support to any lender in the form of loans and advances against collateral such as stocks, funds and securities (other than immovable property) in which a trustee is authorised to invest trust money by an Act of Parliament.