Yes Bank, India’s fifth largest private lender, has been taken over by RBI after it failed to garner investor support in raising capital. 

As of now, RBI has put Yes Bank under a moratorium (temporary prohibition) for a period of 30 days (till 3rd April). RBI has also dissolved the board, appointed a new Chief Executive Officer and put some restrictions on transactions until further notice.

After RBI imposed a moratorium on the private bank, panicked customers lined up in long queues to withdraw money. 

However, Yes Bank took to Twitter to announce that customers will be able to make withdrawals (up to ₹50,000) using their Yes Bank Debit Card both, at Yes Bank and other bank ATMs.

So, if you are an account holder at Yes Bank, and are confused about the whole situation, here are a few things you must be aware of regarding the restrictions imposed by RBI and how they will impact you as a customer.

1. What restrictions have been put in place by RBI for Yes Bank customers?

– Account holders will not be able to withdraw more than ₹50,000 from their savings/current account and fixed deposits till 3rd April.
– If you have multiple accounts in the same branch, you’ll be able to withdraw a maximum of ₹50,000 till 3rd April.
– The bank can’t extend fresh loans, make any investment or create any fresh liability or agree to disburse any payment.
– However, for medical emergencies, higher education and marriage, you can withdraw up to ₹5 lakh.

2. Will RBI restrictions impact your loan EMI, SIP and insurance payments?

– The ₹50,000 cap will apply to all transactions but if the overall transaction for your EMI or SIP is more than ₹50,000 you may face issues. 
– If the amount to be debited is less than ₹50,000 till 3rd April you shouldn’t face any problems.

3. What will happen if you hold a salary account in Yes Bank?

– You may have to get in touch with your employer to figure out an alternative way to get your money as you won’t be able to withdraw more than ₹50,000.

4. What will happen if your account is linked with mutual fund investments?

– If your savings account is linked with your mutual funds you may have to change it immediately as several mutual funds have stopped accepting redemption requests from their schemes into Yes Bank accounts to protect investors. 

– You can request for a change of account by providing a cancelled cheque at a nearby office of CAMS (Computer Age Management Services).

5. Should you be worried as a Yes Bank account holder?

– RBI has said that the interests of the account holders will be protected and there is no need to worry.

– Over the next few days, RBI is going to come up with a scheme for the bank’s reconstruction. 
-However, if the bank gets dissolved, depositor’s money up to ₹5 lakh will be secured through deposit insurance.
– The RBI has allowed Yes Bank to pay salaries and rent of employees so they shouldn’t panic.

In 2003 and 2010, a similar situation occurred when RBI ordered amalgamation of Global Trust Bank with Oriental Bank of Commerce and when IDBI Bank took over United Western Bank respectively. 

For more information, please contact Yes Bank customer care.