Yes Bank crisis: Father tense over money deposited for son's education
Planning for his son's higher education, Peddi Srinivas deposited money in Yes Bank but with the bank in crisis, he is worried over the impact it may have on his plans.
And Srinivas is just one other customer like million others who might be facing a similar crisis.
Srinivas, who has his account in Somajiguda branch of Yes Bank here, now wants to withdraw Rs 5 lakh he had deposited.
Like many others, Srinivas, a real estate businessman, got worried after hearing the news about the moratorium imposed on withdrawals from the bank. He immediately approached a bank official, who assured him that there is no need for panic.
"He told me that for emergencies the depositors will be allowed to withdraw more than Rs 50,000. For this I have to submit the proof. The procedure will be known in a day or two. He said they let me know what are the documents to be submitted and assured me that I will get back the money and there is nothing to worry," Srinivas told IANS.
The businessman had opened its account in Yes Bank about a year ago and deposited Rs.10 lakh for his son's overseas education in the next academic year. "I was told that whenever I need money I can withdraw it." About 4-5 months ago, he withdrew Rs.5 lakh and kept in another bank.
Srinivas's son is in his final year engineering and he wants to do MS or MBA in the US or any other country.
He believes that the intervention by the Reserve Bank of India (RBI) and moratorium is in the interest of the bank and all depositors. "If they don't impose the moratorium, there would have been panic leading to the collapse of the bank. RBI's intervention and the steps taken by it will allay the apprehensions," said Srinivas.