RMC seeks release of Rs.160 crore Smart City Mission fund in Yes Bank
The Rajkot Municipal Corporation has written to the Reserve Bank for the release of the Smart City Mission fund worth about Rs.160 crores stuck in the troubled private sector lender Yes Bank, Gujarat Deputy Chief Minister Nitin Patel said on Saturday.
Patel said that apart from the Rs.160 crores, the government has no other deposit in the capital-starved Yes Bank which was placed under a moratorium for one month on Thursday. The RBI has superseded the board of Yes Bank and capped withdrawals at Rs 50,000.
“As per information provided to me, around Rs.160 crore Smart City Mission fund of RMC is deposited in Yes Bank.
The money belongs to the Central government and the RMC, and hence the municipal corporation has written to the RBI with the request to release the fund as per its requirement,” Patel, who also handles the Finance portfolio, told reporters in Gandhinagar.