In a sudden move, Reserve Bank of India (RBI) yesterday placed the crisis-hit on Yes Bank . After the cases of PMC and DHFL, the RBI has superseded the Yes Bank board for a period of 30 days and placed some strict restrictions on the bank.
If you are a Yes Bank customer and are alarmed over the situation, here is what you need to do. We here provide you with the details of the restrictions placed on the lender what the bank and its customers can now can and cannot do.
The withdrawal limit for all transactions has been limited at Rs 50,000 per account for a month.
The Rs 50,000 limit is the aggregate limit across all your accounts with the bank — savings, deposits or current accounts.
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RBI has superseded its board and has named former SBI CFO Prashant Kumar as the new administrator.
As the limit will apply on all transactions, you may face issues if the amount to be deducted towards these payments is higher than Rs 50,000.
However, if it’s less than Rs 50,000, it will be honoured.
You might need to figure out alternate ways to get money if you have a salary account with Yes Bank and require more than Rs 50,000.
Several mutual funds have stopped accepting redemption requests from their schemes into Yes Bank accounts to protect investors.
You need to take steps so that your future income through mutual fund redemptions or dividends don’t get blocked.
If you have a Yes Bank account tied to your mutual fund investment, you can give a change of account request along with a cancelled cheque at a nearby office of CAMS.
RBI has assured Yes Bank depositors that their interest will be fully protected and that there is no need to panic. RBI will draw up a scheme in the next few days for the bank’s reconstruction or amalgamation, before the period of moratorium (30 days) ends.
However, exceptions to the Rs 50,000 cap may be made for purposes like marriage and medical emergencies, etc.
The bank can pay salaries to its employees and also rents. You may face some issues for some days with some transactions like UPI and NEFT, but the bank will honour your transactions if you have a sufficient amount in your account.
The government has directed a consortium of largest lender SBI and life insurance behemoth LIC to bail out the bank. If successful, this will be the first major instance in many years where a private sector lender will be bailed out using public money.
The first such instance was Global Trust Bank’s amalgamation with Oriental Bank of Commerce in 2003, which was followed by IDBI Bank’s takeover of United Western Bank in 2010.
In case the bank gets dissolved, the insurance limit for depositors will be Rs 5 lakh per depositor across all accounts, including lockers.