Abstract

When a bank closes down, it will lend money from alternative, solvent banks to pay its account holders. A bank panic might come about wherever depositors rush to the bank to urge their cash if the unsuccessful bank were unable to pay its depositors. Once depositors withdraw funds out of the bank, this worsens thing for the troubled bank by lowering its net-assets. The RBI can either sell the failing bank to different solvent bank or take over the service of the bank once a bank fails. Yes Bank, the fifth largest personal investor in India, accounts for around 2.3 per cent of total bank loans and 1.6 per cent of domestic bank deposits. The government and RBI are seeking to save lot of it by absorbing 49 percent stake in SBI, India's biggest public sector investor. This paper tries to check the problem and challenges visage within the case of YES Bank failure. The paper conjointly discusses the factors answerable for such money failure.

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