If You’re a Yes Bank Depositor, Find All Your FAQs Answered Here
Here are all your questions about the Yes Bank mess, answered.
In case you’re wondering what exactly is happening with Yes Bank, what are the limitations placed on the amount of money that depositors will be able to withdraw, and why a lot of online transactions are not going through either, here are all your questions answered.
What Are the Restrictions Exactly?
What are the restrictions placed on Yes Bank depositors?
You will not be able to withdraw more than Rs 50,000 from your Yes Bank account till 3 April, even if you have multiple accounts at the bank.
Till when will the withdrawal limit be in place?
As of now, the withdrawal restrictions, which came into effect at 6 pm on 5 March, are scheduled to stay in place till 3 April 2020.
What if there is a medical emergency or a wedding in the family?
In case of medical requirements, higher education, and marriage and other such ceremonies, higher amounts will be allowed to be withdrawn. That too, comes at a cap of Rs 5 lakh though.
So, what should depositors do?
The RBI has asked Yes Bank depositors not to panic and assured them that a reconstruction plan for the bank will be drawn up in the next few days.
“The Reserve Bank assures the depositors of the bank that their interest will be fully protected and there is no need to panic. In terms of the provisions of the Banking Regulation Act, the Reserve Bank will explore and draw up a scheme in the next few days for the bank’s reconstruction or amalgamation and with the approval of the Central Government, put the same in place well before the period of moratorium of thirty days ends.”Reserve Bank of India
Wait, what does that mean?
It means that the RBI will assess Yes Bank's condition and decide a plan of action, which may include a merger or takeover by another entity. The RBI says it will execute this plan by 3 April.
How big are Yes Bank’s operations?
Yes Bank has deposits totalling Rs 2.09 lakh crore and over 28 lakh savings bank accounts.
What about pay orders that have been issued?
Drafts and pay orders issued so far will be paid in full.
Till what amount are deposits insured?
Depositors will be protected up to Rs 5 lakh, thanks to the deposit insurance cover.
Why the Mess?
Why are Yes Bank depositors being made to go through this inconvenience?
Yes Bank has been having a rough time. As reported by The Economic Times, here are some of the problems that led the bank to where it finds itself today:
- Bad loans amounting to more than Rs 17,000 crore
- Not enough capital
- Bulk deposits were being withdrawn
‘Regret the Inconvenience Caused’
What about online transactions? Are those going through properly?
Yes Bank’s online banking services have been severely affected. As a result, several Yes Bank customers failed to make online fund transfers after the withdrawal cap was imposed from 6 pm on 5 March.
“Dear customer, due to heavy traffic on our NetBanking, we are temporarily unable to process your request. Please try again later or use the YES mobile app to carry out your transactions.”Message on Yes Bank’s online banking page
What’s Happening With UPI?
Those using UPI services to transfer funds are facing problems as well.
So, what exactly is the problem with UPI services?
Yes Bank is one of the biggest back-end solution platforms for making UPI payments across popular services like Swiggy and PhonePe, online shopping giant Flipkart and others.
PhonePe on Thursday confirmed that its services were unavailable as it was going through an unscheduled maintenance activity.
This is likely to have been caused by the issues affecting Yes Bank, which resulted in payments made by users getting rejected.
This development was later confirmed by Sameer Nigam, Founder & CEO, PhonePe on Friday, who mentioned his “entire team's been working all night to get services back up and hope to be live in a few hours.”
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