YES Bank customer? Here's what you should do
YES Bank news: The RBI has asked YES Bank customers not to panic as it will devise and implement a solution within 30 days
- Mar 5, 2020,
- Updated Mar 5, 2020 11:41 PM IST
It was not a pretty sight when operational restrictions were placed on Punjab and Maharashtra Cooperative Bank. Narrow withdrawal limits spoiled Diwali celebrations last year for many PMC Bank depositors. Holi is around the corner, and Reserve Bank of India has capped withdrawals for YES Bank depositors to Rs 50,000. And RBI's assurance that action against YES Bank is meant to safeguard depositors' interest, might not be enough to keep them from worrying.
On Thursday evening, the RBI imposed a moratorium on YES Bank, superseded its board, and imposed a withdrawal limit of Rs 50,000. The central bank said it was "satisfied that in order to protect the interest of the depositors and in public interest, it is necessary to issue certain directions to YES Bank". However, customers are bound to be affected directly.
What's cooking behind YES Bank's back?
In other words, the RBI will assess YES Bank's books and asset quality to decide a plan of action, which might include merger or takeover by another entity, and implement this roadmap within the period of moratorium (30 days), "so that the depositors are not put to hardship for a long period of time".
In case of PMC Bank, the withdrawal limit was increased was increased from the starting limit of Rs 1,000 to Rs 1 lakh. It remains to be seen if the same is done in case of YES Bank too.
It was not a pretty sight when operational restrictions were placed on Punjab and Maharashtra Cooperative Bank. Narrow withdrawal limits spoiled Diwali celebrations last year for many PMC Bank depositors. Holi is around the corner, and Reserve Bank of India has capped withdrawals for YES Bank depositors to Rs 50,000. And RBI's assurance that action against YES Bank is meant to safeguard depositors' interest, might not be enough to keep them from worrying.
On Thursday evening, the RBI imposed a moratorium on YES Bank, superseded its board, and imposed a withdrawal limit of Rs 50,000. The central bank said it was "satisfied that in order to protect the interest of the depositors and in public interest, it is necessary to issue certain directions to YES Bank". However, customers are bound to be affected directly.
What's cooking behind YES Bank's back?
In other words, the RBI will assess YES Bank's books and asset quality to decide a plan of action, which might include merger or takeover by another entity, and implement this roadmap within the period of moratorium (30 days), "so that the depositors are not put to hardship for a long period of time".
In case of PMC Bank, the withdrawal limit was increased was increased from the starting limit of Rs 1,000 to Rs 1 lakh. It remains to be seen if the same is done in case of YES Bank too.