Government restricts withdrawal limit from Yes Bank at ?50,000. RCom lenders led by SBI approve ?23,000cr resolution plan. RBI to seek review of Supreme Court order on cryptocurrency. Tik Tok set to hire its first Chief Information Security Officer. Facebook to remove Trump Campaign Ads.
Table of Contents
The Government has imposed a month-long moratorium on Yes Bank, capping the withdrawal limit from the private lender at ?50,000 ($679) for the next one month.
Yes Bank cannot make in aggregate, payment to a depositor of a sum exceeding ?50,000 ($679) lying to his credit, in any savings, current or any other deposit account till April 3rd, said a Government notification.
During this period, the bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.
RBI will, however, relax the withdrawal limit in the event of medical emergencies, higher education fees or marriage expenses - up to a cap of ?5L ($6,792).
The RBI in consultation with the Government has superseded the Board of Directors of Yes Bank for a period of 30 days, citing “serious deterioration in the financial position of the Bank." [Livemint]
Don't Panic, Keep Calm
RBI Governor Shaktikanta Das has said that Yes Bank resolution will be done swiftly. "30 days which we have given is the outer limit. You will see a very swift action from RBI," he noted.
"The decision is taken at a larger level, not at individual entity level, the move is aimed at ensuring safety of financial system," he added. [BS]
Lenders of Reliance Communications led by SBI have approved a resolution plan that will fetch the defunct telecom company ?23,000cr ($3,124m).
Under the resolution, 38 lenders of RCom can recover over 70% of their outstanding dues of ?33,000cr ($4,482m) secured debt. Chinese banks will get ?5,500cr ($747m) under the resolution, which will clear over half of their principal dues.
The lenders have received bids from Reliance Jio and UV Asset Reconstruction Company (UVARC) for different assets of Reliance Communications. Reliance Jio is eyeing RCom’s tower and fibre assets housed under subsidiary Reliance Infratel. UVARC had bid for spectrum, real estate and enterprise and data centre businesses of RCom. [Financial Express]
No Means No
Manufacturer of printers, printer supplies and personal computers HP has yet again rejected another takeover bid by Xerox, deeming the offer as too low. The bid offered $35bn or $24 a share in cash and stock, up from the pervious offer of $22 a share.
The offer would leave Xerox “burdened with an irresponsible level of debt and which would subsequently require unrealistic, unachievable synergies that would jeopardise the entire company,” HP Chairman Chip Bergh said. [Reuters]
As per sources, the RBI is planning to file a review petition in the Supreme Court (SC) against the quashing of its April 2018 circular, which barred banks and other financial institutions from facilitating “any service in relation to virtual currencies”.
The RBI fears that the decision of the SC could pave the way for trading in virtual currencies and put the banking system at risk. [ET Policy]
The SC had earlier this week overturned the circular, allowing cryptocurrency trading in India, and the move has instilled in entrepreneurs a sense of confidence, betting on the re-emergence of the cryptocurrency segment with support from the investor community.
Following the RBI circular, multiple startups engaged in cryptocurrency trading in India have shut shop, primarily due to the lack of funding, including the likes of Koinex. [Yourstory]
Hard Times Ahead
Some equity mutual fund schemes from top fund houses may take a big hit after shares of Yes Bank dived more than 30% today following the RBI's takeover of the bank management.
Data available with Ace Mutual Fund showed money managers such as HDFC Asset Management Company, SBI Funds Management, Kotak Mahindra Asset Management and Nippon Life India Asset Management held between 1-5cr shares of Yes Bank as of January 31st.
Franklin Templeton Asset Management, UTI Asset Management, ICICI Prudential Asset Management and Quantum Asset Management also held between 20-92L shares in their portfolios as of January 31st. [ET Markets]
Planning to buy a car? Is your research in place? What about the loan process? Well, most of us figure these bits out pretty early on in the plan. Something that many of us miss out on is the insurance bit.
Owning and maintaining a car can cost a lot of money, especially considering that car insurance premiums are getting increasingly expensive. Here are 12 useful tips to reduce car insurance premium. [Financial Express]
Make Hay While the Sun Shines
Popular short-video app Tik Tok is set to hire its first Chief Information Security Officer in a bid to reassure regulators and lawmakers that it is safely guarding its users’ data.
The move comes at a time when US regulators are monitoring the app for potential national security threats, considering that it is owned by Chinese conglomerate Bytedance.
TikTok is hiring cyber security expert Roland Cloutier from payroll processing company Automated Data Processing for the newly created role. [WSJ]
Facebook has said that it will remove some ads run by President Donald Trump's re-election campaign that it says ran afoul of its policies to "prevent confusion around the official US census".
Facebook had come under fire for allowing the Trump campaign to run ads this week on its platform asking people to "respond now" to an "Official Congressional District Census".
"This survey is ESSENTIAL to our team's 2020 campaign strategy. We need Patriotic Americans like YOU to respond to this census, so we can develop a winning strategy for YOUR STATE," some of the ads read.
The questions on the survey include asking users about their views of President Trump as well as their age, name, and contact information. The survey also asked what news outlets they read most and if they "think Nancy Pelosi and the Radical Left are putting their personal anti-Trump agenda ahead of what's best for the American people". [CNN Business]
How well do you know the top news of the last week? Have a go at our TheWeekThatWas Quiz and test your wits.