The Reserve Bank of India has imposed a withdrawal capping of Rs 50,000 for depositors of Yes Bank starting March 5, 2020 till April 3, 2020. This restriction is placed on aggregate withdrawals & advances from all Yes Bank Accounts– Savings, Deposits or Current Accounts.
That is, irrespective of the amount you have in your Yes bank account, you cannot transact more than the overall cap. This brings about a lot of confusion, panic & chaos for Yes Bank customers including & not limited to:
The RBI’s decision to place capping on withdrawals is a part of Government of India’s order of moratorium on Yes Bank. Thus, a customer is barred to commence or continue any type of transactions from or against the bank.
However, a few exemptions are offered for customers having following situations:
1. If you have emergency situation, contact the authorities to avail exemption. However the scale of exemption will only be decided case basis.
2. On individual basis, it is recommended to make a list of immediate proceeds due from your Yes Bank. For instance your Home Loan & Car Loan EMI could be something to immediately take care of, while SIP & payment of insurance may wait for a few days. You get a grace on your insurance premium, though it varies for various insurance providers.
3. If possible, make alternative mandate from other banks.
4. Apply for a new Savings Account in case you do not have other bank account. For, a bank account will make it easier to request for alternate mandates & also receive proceeds directly in your account online.
5. For those who missed deadline due to unprecedented ban on Yes Bank proceeds, should use their bank statements later on to prove credit bureau of their financial well being. The dispute will remove any red mark on your credit report.
6. In all probability, RBI will take best care of depositors’ interest and thus you should not panic.
The RBI also announced later in another press release announced supersedence of Yes bank’s existing board for a period of 30 days. Former SBI CFO Prashant Kumar has been appointed as administrator for Yes Bank.
Reshma Rawat is a passionate writer with a decade of experience in writing for a variety of domains (finance, technology, lifestyle, e-commerce, real estate, etc.). Currently, she is working as Assistant Manager - Content @MyMoneyMantra and writes blogs & webpages on financial products (loans, credit cards, insurance, government financial policies, mutual funds, etc.).
Director- MyMoneyMantra FinTech| A senior retail and commercial banking professional, adept at handling Business Development, Sales Planning & Growth, Product Strategy, Marketing Operations and Client advisory services phygitally.
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