Bells begin to toll as RBI fires Yes Bank board, limits withdrawals at Rs 50,000
Home ECONOMY If you are Yes Bank customer, here’s all you need to know
ECONOMY - March 6, 2020

If you are Yes Bank customer, here’s all you need to know

Yes Bank, India’s fifth-largest private sector lender, was placed under a moratorium with the Reserve Bank of India (RBI) taking over from its board for 30 days and imposing limits on withdrawals to protect depositors.

The rare and drastic move, the central bank said, was necessary because of a serious deterioration in Yes Bank’s financial position and that it would swiftly work on a revival plan.

The measure came after financial markets had closed and amid discussion at the board of India’ top lender, State Bank of India (SBI), which agreed on Thursday to conduct a viability assessment into buying a stake in Yes Bank.

But RBI said late on Thursday that it had been left with no option but to ask the government to impose a moratorium, assuring depositors that there was no need to panic.

Here is what it will mean for Yes Bank’s customers and what they need to do:

* The government has said all actions and proceedings against the bank would be stayed and capped most withdrawals at Rs 50,000 rupees until April 3. It also ordered the bank not to pay more than Rs 50,000 to most creditors.

* The Rs 50,000 cap is an aggregate amount across all bank accounts at the beleaguered Yes Bank—savings, deposits or current accounts.

* Exceptions will be decided by a “competent authority” and will be made in a few cases. The amounts in these cases cannot be more than Rs 5 lakh or the amount of money that is in the accounts (whichever is less).

* Yes Bank won’t be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.

* The bank has also clarified it will also be able to pay salaries to its over 20,000 employees as well as rents.

* You might need to figure out some other funds if you have a salary account with Yes Bank.

* You will need to speak to your receiving bank or housing company immediately and ask for a one-month window to sort things if you are paying an EMI from your Yes Bank account.

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