Yes Bank Customer? What You Need To Know About Your Savings, Loan Payments, ECS, EMIs And Salary Account

New Delhi:

The Reserve Bank of India (RBI) placed a 30-day moratorium on Yes Bank till April 3. According to a government gazette, Yes Bank depositors will be allowed to withdraw cash up to Rs 50,000 only from their accounts during the moratorium period. Additionally, Yes Bank will also not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment during this period. According to PTI, the RBI move came after the Rana Kapoor-promoted bank failed to raise capital to address potential loan losses. However, RBI has assured Yes Bank depositors and customers that their interest will be fully protected and that there is no need to panic.

The assurances, predictably, failed to assuage the customers' fears and many panicked customers began queuing up before ATMs to withdraw their money soon after the RBI announcement. Customers, who have saving, salary or corporate accounts in Yes Bank or those the bank's service to pay their EMIs, loan via ECS  and other methods, are looking for clarity.

ALSO READ: How Yes Bank Became No Bank- A Tale Of Financial Failure In 5 Points

If you are a Yes Bank customer, here is all you need to know about what will happen to your savings, loan payments, ECS, EMIs and salary account:

1. What To Do If You Have An Account With Yes Bank?
   RBI has capped withdrawals at Rs 50,000 per account till April 3.  It has ordered the bank not to pay more than Rs 50,000 to most creditors. While regular banking transactions including fund transfer, cheque clearances and EMI debits (to Yes Bank) are likely to remain unaffected, all cash outgoes will be within the Rs 50,000 limit. The limit on withdrawal is expected to affect customers who have deposited their entire life savings in the bank and are drawing monthly interest payments or those having salary accounts.
2. Will RBI Raise Yes Bank Withdrawal-Limit After A Month? 
   RBI had imposed the Rs 50,000-limit from March 5 to April 3. In case of Punjab and Maharashtra Cooperative (PMC) Bank, the withdrawal limit started from Rs 1,000 and was gradually increased to Rs 1 lakh. It is expected that RBI may relax restrictions in case of Yes Bank too as situation improves or clarity emerges.
3. Who Will Be Exempted From The Yes Bank Withdrawal-Limit? 
   According to Hindustan Times, exceptions will be made in a few cases and decided by a "competent authority". However, in such cases, the amounts cannot be more than Rs 5 lakh.
4. What To Do If You Have An Salary Account With Yes Bank?
   Those who have a salary account with Yes Bank are likely to be troubled the most. You should inform your employer and get your salary account changed to another bank to ensure you get your salary on time.
5. What To Do If You Have EMIs, SIPs, Insurance Premium Payments Via Yes Bank?
   Do you have an account with Yes Bank linked to equated monthly instalments (EMIs), systematic investment plans (SIPs), insurance premium payable via ECS? In such cases, you may face a problem if the amount to be deducted is higher than Rs 50,000. You should make alternative arrangements if your EMI or any other payment is due to be debited from the Yes bank account.
6. If You Are Paying Loan To Other Banks Via Yes Bank?
   If you are repaying a loan to some other bank or non-banking finance company (NBFC) then you should inform your lender. You should speak to your receiving bank or housing company immediately and ask for a window to sort things if you are paying an EMI from your Yes Bank account. You can ask for some leeway or help in terms of extending your deadlines for some time. You can also make arrangement to pay for EMIs or payments using another source. You should also give your lender bank or NBFC an alternative ECS mandate so that you don't face problems towards payment of your future EMIs.
7. Is My Money In Yes Bank Protected Under Deposit Insurance Scheme?
   In the event of a total collapse of a bank, a customer receives up to Rs 5 lakh under the Deposit Insurance and Credit Guarantee Corporation. However, the provision will be triggered only if Yes Bank suffers a total collapse. Currently, RBI has assured that the amount deposited in Yes Bank is secure.

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