Yes Bank crisis: What its customers should know
Cash-strapped Yes Bank has been put under moratorium by the Reserve Bank of India (RBI) and capped withdrawal limit for depositors to Rs 50,000 for at least a month. On Friday, in order to ensure Yes Bank's customers, Finance Minister Nirmala Sitharaman assured that their money was safe and that she was in constant touch with the RBI on the crisis-hit bank's situation.
RBI chief Shaktikanta Das also said Yes Bank resolution efforts are aimed at maintaining "stability and resilience" in the Indian financial sector and the difficulties will be overcome "very swiftly." He said the 30-day moratorium deadline is an "outer limit" and reiterated that the interests of the depositors will be "fully protected".
The central bank today said the State Bank of India (SBI) has expressed willingness to invest in crisis-ridden Yes Bank and its set to acquire 49% stake.
What a crisis-hit Yes Bank customers need to know
On withdrawal limit of Rs 50,000
Yes Bank customers must know that they can only withdraw up to Rs 50,000 in a month (till April 6). This will include transactions like withdrawing money from the savings account, Electronic Clearance Service (ECS) for loans, Systematic Investment Plan (SIPs) and withdrawing from fixed deposits.
Are your savings safe?
Customers need not worry as it is highly likely that their deposits in the bank will remain safe that are insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC).
How will your EMIs get paid?
Customers will need to shift their EMIs, SIPs to other bank accounts as there is no surety what kind restrictions may come up in future, therefore, analysts advice to switch over to some other bank.
How Yes Bank moratorium will affect insurance premiums?
In wake of Yes Bank being placed under moratorium, Kotak Mahindra Asset Management Company and Edelweiss Mutual Fund have cleared the air that transactions like redemption payouts will not be made to Yes Bank accounts. It is advised that customers should shift their bank accounts to other banks to continue with their SIP payments.
What happens to Digital transactions?
Yes Bank credit and debit cardholders won't be able to make any digital transactions as the National Payments Corporation of India (NPCI) has removed it from payments networks. Customers won't be able to perform transactions via point of sale or while dining out, till further orders.