5 Things You Should do to Deal with Yes Bank’s Ban on Cash Withdrawals

March 6, 2020      Sandeep Kumar Mishra

The Reserve Bank of India’s moratorium on YES Bank, which resulted in restricted cash withdrawals on amounts greater than Rs 50,000 till 3rd April 2020 has sent its customers into a tizzy. Thousand of its customers are now staring at a bleak future. YES Bank’s ban on cash withdrawals will impact its clients regardless of the number of accounts that they have in the bank. It is because the moratorium will apply cumulatively on all accounts if a person has multiple deposit accounts in the bank.

What impact will the YES Bank’s ban on cash withdrawals have on your deposit’s security?

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.

1. Keep your lender in the loop

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.

2. Keep your investments under check

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.

3. SIP 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.

4. Get in touch with your employer

Get in touch with your employer

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.

5. Last But Not the Least- DON’T PANIC

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!

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Sandeep Kumar Mishra
Sandeep Kumar Mishra

Sandeep is an avid cryptocurrency enthusiast and a keen & passionate blogger. He has a strong mix of skills in the areas of computer networking, cryptography, algorithms, and data structures and specializes in ERC20 tokens. Lately, he is taking a lot of interest in blockchain-powered AI solutions, about which he is also reading and writing extensively. He has to his name dozens of deeply researched articles about cryptocurrencies, blockchain, AI, and IoT. Apart from that, he loves to keep track of the latest trends in social media and digital marketing space. Also, as a huge proponent of blockchain and cryptocurrencies, Sandeep tries to deliver all the latest cryptocurrency news to ardent crypto supporters like yourselves. If you like his content, feel free to follow him on LinkedIn.