What happens to my Yes Bank salary account? Eight FAQs for account holders, answered

The RBI has placed Yes Bank under moratorium for a month. Here's what to keep in mind until further clarification after April 3, with regards to withdrawal limits, EMIs, cheques issued and more

Salil Panchal
Published: Mar 6, 2020 06:02:03 PM IST

Life is not a template and neither is mine. Like several who have worked as journalists, I am a generalist in my over two decade experience across print, global news wires and dotcom firms. But there has been one underlying theme in each phase; life gave me the chance to observe and tell a story -- from early days tracking a securities scam to terror attacks and some of India's most significant court trials. Besides writing, I have jumped fences to become an entrepreneur, as an investment advisor -- and also taught the finer aspects of business journalism to young minds. At Forbes India, I also keep an eye on some of its proprietary specials like the Rich list, GenNext and Celebrity lists. An alumnus of Xavier Institute of Communications and H.R College of Commerce and Economics in Mumbai, I have worked for organisations such as Agence France-Presse, Business Standard, The Financial Express and The Times of India prior to this.

yes bank bImage: Danish Siddiqui / Reuters

Q. Why has RBI placed the withdrawal limit at Rs 50,000?

When it comes to banks placed under moratorium, the RBI has learnt some lessons from the bitter experiences which depositors faced during the Punjab and Maharashtra Cooperative (PMC) Bank moratorium period in September last year. Initially, depositors were allowed to withdraw only Rs 1,000, which was later raised to Rs 25,000, and finally, to Rs 50,000. In the case of Yes Bank, the view probably is that Rs 50,000 is adequate for individuals/families to meet their household liabilities.  

Q. Is this Rs 50,000 withdrawal limit per depositor or per account?
This is per account. The finance ministry notification states that even if the depositor has multiple accounts, the total aggregate per account that can be paid shall not exceed Rs 50,000. 

Q. Will cheques that I issued just recently get cleared?
If your cheques are below or up to the amount of Rs 50,000, they will get cleared. 

Q. What will happen to my ECS debit for my home loan and/other EMI payments?
Our interaction with the bank indicates that in this cycle, the ECS should get cleared but, in cases where your home loan bank is another one, do look for alternatives to make the necessary payment.

Q. The government says one can withdraw more after proving medical emergencies. How does one prove this?
The government has indicated that an amount up to Rs 5 lakh can be withdrawn if the depositor makes a special written request to the Reserve Bank administrator for Yes Bank, Prashant Kumar, or the panel led by him. The medical treatment, or the case for higher education, needs to be spelt out clearly, for it to be considered.

Q. I am planning to issue two pre-dated cheques today. Will they get cleared?
If the amount is below Rs 50,000, in each case, it will happen.

Q. What will happen to my salary account in Yes Bank?
In order to ensure adequate liquidity, it would be prudent to look for other forms of funding.

Q. I have already withdrawn Rs 50,000. Can I do a Yes Bank credit card transaction a few days later?
As of now, all credit card transactions through Yes Bank have been blocked. Yes Bank itself will await further instructions from the RBI and work alongside NPCI to ensure smooth clearance of transactions.

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