Yes Bank depositors can now only withdraw Rs 50,000 starting today and until April 3. This is an aggregate amount across all bank accounts - savings, deposits, current accounts. This is the limit for more than one account buy the same person.
There will be exceptions for those with need for:
1. medical treatment of self or dependants
2. cost of higher education of self or dependant in India or abroad
3. marriage of kids or other dependants
4. other 'unavoidable emergency'
1. medical treatment of self or dependants
2. cost of higher education of self or dependant in India or abroad
3. marriage of kids or other dependants
4. other 'unavoidable emergency'
A 'competent authority' will decide on these exceptions and the amount cannot be more than Rs 5 lakh or the actual balance in the account, whichever is less.
RBI says that interest will be paid on the deposits and that people should "not panic".
Brave words from the RBI - people are going to panic big time. The only hope is that there is no contagion of this move onto other banks.
Brave words from the RBI - people are going to panic big time. The only hope is that there is no contagion of this move onto other banks.
If you are paying your EMI from Yes Bank, you should at once talk to your receiving bank or housing company and ask for a one month window to sort things out.
If your home runs on salary that goes into Yes Bank, this is the time to use your emergency fund if you need to.
If your home runs on salary that goes into Yes Bank, this is the time to use your emergency fund if you need to.
Talk to your employer at once if the salary account is Yes Bank and move the next salary credit to your other bank account.
If you had a large payment due out of your Yes Bank deposits in the next month, immediately begin to prepare to use your emergency fund.
If you had a large payment due out of your Yes Bank deposits in the next month, immediately begin to prepare to use your emergency fund.
If your emergency fund was in Yes Bank. Well, then you are really in a mess....The writing has been on the wall for Yes Bank for some weeks and lots of depositors have taken their money out.
The govt and RBI need to act very quickly to restore confidence. This is just the wrong time for a banking panic to spread. What was done with Global Trust Bank and Bank of Rajasthan - shotgun wedding to another bank to protect depositors - will have to be done.
Investors who were playing speculate speculate with the stock and creditors will suffer the most. I can only hope that RBI and the govt manage to find recourse for depositors.
Brokerage @zerodhaonline and @EdelweissAMC have decided not to process redemptions into Yes Bank. Excellent steps. Contact your brokerage and mutual funds to stop redemption into Yes Bank. Quickly get the bank mandate changed tomorrow.
RBI has done this before with Global Trust Bank. If that is any indication, depositors should NOT worry.
m.rbi.org.in/Scripts/BS_Pre…
m.rbi.org.in/Scripts/BS_Pre…
Kotak MF also reaches out:
"If clients want to change their Redemption bank account mandate from Yes Bank to any other bank they can send a request to Mutual@kotak.com. We shall process the request for tomorrow's redemptions so that their money isn't blocked." @NileshShah68
"If clients want to change their Redemption bank account mandate from Yes Bank to any other bank they can send a request to Mutual@kotak.com. We shall process the request for tomorrow's redemptions so that their money isn't blocked." @NileshShah68
