The Reserve Bank of India Thursday evening superseded the board of Yes Bank and has put curbs on its operations till April 3. The central bank appointed Prashant Kumar as the new administrator of the bank and is expected to come up with a restructuring plan shortly and presently curbed withdrawals at Rs 50,000. Shares of Yes Bank hit a 52-week low on Friday, down 85 percent.

CNBC-TV18's Latha Venkatesh and Shereen Bhan caught up with veteran bankers Uday Kotak, MD of Kotak Mahindra Bank and Deepak Parekh, chairman of HDFC, to decipher what to expect going forward.

The bankers spoke at length about what this will mean given the kind of linkages that Yes Bank has with the broader economy, what kind of confidence-building measures need to be put in place and of what will be the rescue plan that is being worked upon.

Kotak said, “Under the Banking Regulation Act there is a section - Section 45 – which gives very wide powers to RBI under the law in this particular case. Therefore, the Reserve Bank of India is now working on a plan which is under Section 45 of the Banking Regulation Act.”

“I do believe that the RBI would have a game plan in place when it made the announcement (last evening) and in this particular case of Yes Bank, I am quite confident that in the next few days we will see a draft plan of restricting of whatever shape and form is required which will be put in place by the RBI at great speed. As per the law, this is then got to be approved by the government and I expect action within the next few days to take an appropriate solution,” he added.

Parekh too weighed in on the issue and said, “The panic that we have seen in the market is unnecessary according to me. Its overreaction because of the moratorium which RBI has put and I entirely agree with Uday that the moratorium won’t last till April 3 but it will be done in a few days.”

“Things will settle down in a few days or maximum a week. I don’t see the depositors having any issue that they will lose their deposit or anything. I think we need to give assurance. We are also in the financial system and under Banking Regulation Act the RBI has a right to do whatever it needs to protect the depositors and they have taken action on this,” Parekh added.