Do you hold an account in Yes Bank? Do you have money stocked in there, which you are finding hard to withdraw? Don’t worry, there are many others like you. Remember, your money is not ‘gone’.
We tell you what you should do in this time of uncertainty.
One of the leading private banks of India which mainly appealed to the younger crowds – Yes Bank has finally been given in the hands of Reserve Bank of India who has planned to restructure the bank, with SBI planning to buy 49% stake in the bank. The situation worsened further when Yes Bank CEO Rana Kapoor was charged with money laundering and was arrested for the same along with his daughter.
The RBI last week put a restriction on withdrawals from Yes Bank accounts, capping it at Rs. 50,000 per month. Now account holders who have their money in the bank have been thrown in a frenzy as to whether their money is safe or not. The cap limits withdrawal from the bank in all forms, including cash, electronic transfers, card payments and Unified Payment Interface transactions.
Especially those having their business accounts or current accounts in the bank are worried because their wealth has now been locked in the bank and has become inaccessible. Yes Bank customers can also use ATMs of other banks to withdraw funds. There have been long queues outside the ATMs, due to the RBI announcement as this has left the customers worried.
Customers have no option left as they have to wait outside the ATMs, waiting for the turn, which is very similar to the demonetization days. This is even hampered the operations of various businesses, who require large payments on daily basis, as the 50,000 cap is valid for all customers irrespective of the scheme they have opted for while opening their accounts.
To quell fears, RBI has asked people not to panic and has also promised that the cap on the withdrawal will be removed soon. In the meanwhile, what should a person having an account in Yes Bank do?
Do not accept money in Yes Bank account
This is the most obvious and reasonable thing. If you want to take payment from someone digitally, avoid taking it in Yes Bank. Instead, take the payment in cash or in any other bank accounts, since you may not be able to withdraw it easily.
Withdraw whatever you can
Considering the current scenario, you must try to remove as much funds as possible from the “bankrupt bank.” There are various customers who have funds of over 500 crores parked with Yes Bank. However, the RBI officials have assured, that the funds are safe, and all necessary measures will be taken to safeguard them.
Instead of panicking, you should withdraw 50,000 from your account as of now, so that you have enough money for all your day to day needs and wait for further announcements from the RBI. It is therefore, always recommended to plan your investments effectively, so that you are always prepared for such hard times.
Wait for more news
There is news that SBI, the largest bank of India, is planning to invest in Yes Bank. The investment is valued at around INR 2450 crores, which will be a pickup of 49 per cent stake in the private bank. This investment is not going to affect the deposits and liabilities of the customers, and the bank will continue dealing with them in the same manner. The cap on withdrawals is up to the period of 3rd April.
If the withdrawal cap is not removed after 3rd April, the only option left with the customers will be to wait for the reconstructed bank, which will be created if SBI invests in Yes Bank. Once the reconstructed bank begins in operations, the withdrawal process will begin seamlessly again.
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