Before we get on to how crisis at Yes Bank and the earlier PMC bank fall out are different.
Here's we will discuss what led to a brand like Yes Bank which is though the country's fourth leading private lender to see such a calamity:
The lender since long was making all efforts to raise capital though the plan until the fall-out did not materialize and given the seriousness with respect to the bank's financial position with rising NPAs, the RBI and the government to prevent the collapse of such large bank came to its rescue late on Thursday and announced a moratorium, wherein withdrawals were restricted to the tune of Rs. 50,000 until next month.
Experts assume the decision to be rather sensible as the likely move will prevent up a run up to bank deposits and hence avoid collapse of the lender like Yes Bank.
Also as per the central bank, what led to a crisis at Yes Bank is "serious governance issues and practices". Also, the company had exposure to some of the corporate defaulters including Jet Airways, Cafe Coffee Day, Jet Airways etc.
So, here is we point out the major differences between the fall-out at Punjab and Maharashtra Co-operative Bank and Yes Bank:
1. Moratorium period:
In the case of Yes Bank, the moratorium is for a period of 30 days and individuals in exigencies can withdraw up to Rs.5 lakh while in the usual case it is pegged at Rs. 50,000. Nonetheless just a day after the announced moratorium, RBI to finance minister all have come on to assure depositors and account holders at the bank, saying that their interest will be protected at all cost.
While for the PMC bank, the moratorium was for a 6-months period with on forward looking outlook by the Reserve Bank of India (RBI).
2. Substantial difference in the withdrawal amount:
For PMC the withdrawal was just at Rs. 1000, while for Yes Bank we had stated earlier that it is pegged at Rs. 50,000. Nonetheless, the apex bank has made a call that it shall consider exceptional reasons and make a relaxation on the upper limit of withdrawal for cases such as illness, education fees, wedding etc.
3. Measures taken by the RBI to prevent such crisis:
The Reserve Bank of India (RBI) on Friday released a draft 'Yes Bank Ltd. Reconstruction Scheme, 2020.' The draft proposes the share capital of the restructured bank to stand altered to Rs 5,000 crore and the number of equity shares to 2,400 crore of Rs 2 each aggregating to Rs 4,800 crore.
"The Reserve Bank invites suggestions and comments from members of the public, including the banks' shareholders, depositors and creditors on the draft scheme," the central bank said in a statement. "The suggestions and comments will be received by Reserve Bank of India up to Monday, March 9, 2020," it further said.
And for the PMC Bank fall-out, government has stepped in to bring cooperative banks within the ambit of RBI for governance and their regulation.