If you have deposits in YES Bank, you need not worry. Deposit Insurance and Credit Guarantee Corporation (DICGC) protects all the deposits up to 5 lakh with all banks, including the interest. But you must know that this is applicable only in the event of your bank’s failure. Unfortunately, that isn’t the case with YES Bank as the RBI has seized control from the bank’s board.
Although the RBI has provided a bit of relief in emergency cases, it isn’t expected to make much of difference for a majority of bank’s account holders. Despite the RBI’s assurance to the depositors about a possible resolution soon, there is still a lot of scepticism around. So here are a few things that you can do to deal with the ban of cash withdrawals from YES Bank.
If there’s any loan that you have to pay to any bank or NBFC, immediately inform your lender about the ban. Although you would still have to pay your EMIs, your lender might provide you with some concessions that will help you deal with Yes Bank’s ban on cash withdrawals. Who knows, they might extend your deadline by a couple of months.
If you don’t have adequate funds at your disposal because of the RBI ban on cash withdrawals from YES Bank, you might have to cut down your investments. As your YES Bank account won’t see any debits during the moratorium period, you should immediately register fresh ECS mandates in another bank to clear your payments.
You could be in a real fix if you have linked your YES Bank account toward the payment of your SIPs or receiving dividend proceeds from mutual funds. But you need not worry. A few fund houses have come up on social media and have assured people that they would help them change their bank mandates to ensure that the money flow remains undisturbed. You should immediately reach out to these fund houses, especially if you have filed a redemption request in the last three days.
The latest cash withdrawal rules from YES Bank has also seen many brokerages taking the initiative to secure their customers’ funds. For instance, Zerodha, which is one of the largest brokerages in India, assured its customers that it won’t deposit redemption requests into the YES Bank accounts of clients even if the request for the same has been made recently. But you must reach out to these fund houses as soon as possible to get your other bank accounts registered.
While most companies have their own salaried accounts, some small organizations credit salaries into the personal bank accounts of their employees. If you work in such a company and have a YES Bank account, get in touch with your employer immediately and inform them about the limit for cash withdrawal in YES Bank.
Don’t let the YES Bank’s ban on cash withdrawals send you into the panic mode. The moratorium is supposed to be there for a month. Also, there’s ample indication that the authorities would come up with some solution till that time. Just keep yourself informed on all further notifications and limit for cash withdrawal. Stay calm, stay composed!