Mar 9,2020:The founder of India’s Yes Bank was arrested on allegations of money laundering Sunday, amid efforts to formulate a rescue plan for the country’s fourth-largest private lender.
In a late-night move Friday, the Central Bank seized control and imposed withdrawal limits on Yes Bank, which has been struggling with bad loans.
Rana Kapoor was arrested at about 3:00 am Sunday after being questioned for more than 20 hours by officials from the Enforcement Directorate, India’s financial intelligence agency, in Mumbai.
Officials earlier raided Kapoor’s sea-facing residence in an upscale Mumbai neighbourhood.
The limit on withdrawals to 50,000 rupees ($678) every 30 days had sent customers rushing to Yes Bank ATMs and branches on Friday and Saturday in a desperate bid to retrieve their deposits.
The State Bank of India, the country’s largest lender, said Saturday it was ready to invest 24.5 billion rupees for a 49 percent stake in Yes Bank as part of a Reserve Bank of India-backed rescue plan.
