Are you a Yes Bank customer? Here’s what you should know

We answer some of the questions like, How much you can withdraw, What happens to your deposits, What if you have a medical emergency, etc.

Hyderabad:The Reserve Bank of India on Thursday announced that it was superseding the Board of Yes Bank for nearly one month.

Subsequently, the Union Government has also issued a direction saying the bank is under moratorium from March 5 to April 3 2020.

The unexpected move caused confusion and led to anxiety among lakhs of depositors and thousands of employees with regard to their savings, loans, etc.

Now, the big questions are – What happens to them now? Are deposits safe? What if you have medical emergency?

Some of these questions were answered by the RBI & Union Ministry of Finance. Find the summary below.

During the Moratorium period -

A depositor cannot withdraw more than Rs 50,000 from savings, current or any other deposit account. If a depositor has more than one account the total amount that bank is liable to pay from all the accounts together shall not exceed Rs 50,000.

If such depositor is having dues payable to the bank in any manner, either as a borrower or surety, the amount payable to such depositor shall be made after adjusting the relevant borrowal accounts.

However, Rs 50,000 cap is not applicable -

- In connection with the medical treatment of the depositor or any person actually dependent on him

- Towards the cost of higher education of the depositor or any person actually dependent on him for education in India or outside India

- To pay obligatory expenses in connection with marriage or other ceremonies of the depositor or his children or of any other person actually dependent upon him

- In connection with any other unavoidable emergency

In the above mentioned four instances, a depositor can withdraw up to Rs 5,00,000 only.

The government also made it clear that it is up to the RBI to allow Yes Bank for the above mentioned emergency withdrawals through a general or special order.

During the moratorium period -

Yes Bank shall not grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment, whether in discharge of its liabilities and obligations

Except -

- Payment may be made of the amounts of bills received for collection on or before and realised before, on or after dated March 5, 2020

- Expenditure incurred towards meeting the obligations in respect of the following items.

a) salaries of employees

b) rent, rates and taxes

c) printing, stationery, etc

d) postage and telegrams

- Payment of premium payable to the Deposit Insurance and Credit Guarantee Corporation can be made.

- Expenditure can be incurred on any other item, in so far as it is in the opinion of the banking company, necessary for carrying on its day-to-day administration.

If the banking company desires to incur any other expenditure on account of emergency during the currency of these directions, it has to take special permission from the Reserve Bank of India.

These directions shall remain in force during the period of moratorium unless otherwise intimated by the Reserve Bank of India and shall be subject to review.