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What happens to Yes Bank credit cards, home, car loans?

Yes Bank crisis: RBI's reconstruction scheme for the bank will not impact any action, suit, appeal or any proceeding of whatever nature pending

Anwesha Madhukalya | March 8, 2020 | Updated 14:23 IST
What happens to Yes Bank credit cards, home, car loans?
Yes Bank crisis: How does the reconstruction impact customers?

The RBI announced a reconstruction scheme for the troubled Yes Bank on Friday. Yes Bank was put under restrictions on Thursday by the apex bank. The RBI has said that the reconstruction has been devised to revive the bank. If you are a Yes Bank customer, then here are a few things mentioned in the Reconstruction Scheme that you should know:

Also read: YES Bank crisis: Rana Kapoor sent to three-day ED custody till March 11

1. All deposits and liabilities of Yes Bank will continue in the same manner and with the same terms and conditions and will not be affected by the scheme. This essentially implies there will be no change in any conditions related to home loan, personal loan or car loan or credit card dues of the customers. They will have to continue making their EMI payments as per their existing terms. Also, all depositors can expect interest to grow on their deposits as per current interest rates.

Also read: YES Bank ATMs up and running now; withdraw from others too

2. All schemes, contracts, deeds, bonds, agreements, powers of attorney, grants of legal representation and other instruments shall be effective to the extent and in the same manner as applicable before the scheme. This means all legal contracts related to Yes bank won't be affected by the ongoing crisis.  

Also read: RBI announces restructuring of Yes Bank; SBI to hold 49% stake

3. No accountholder will receive any compensation from Yes Bank on account of changes due to the scheme. Any changes in interest charges or rates, credit card rebranding or change of terms, home loan change of terms, etc won't be liable for compensation.

4. The scheme will not impact any action, suit, appeal or any proceeding of whatever nature pending. Recovery certificate obtained by or against Yes Bank will also not be affected.

5. Branches and offices of Yes Bank will continue to function in the same manner and the same places as now. RBI might open new offices or branches of Yes Bank in accordance with the extant policy of the apex bank and according to necessary terms and conditions.

On Thursday evening, the RBI put Yes Bank under restriction, allowing depositors to withdraw Rs 50,000 for a month. On Friday, the apex bank announced that SBI has expressed willingness to make an investment in Yes Bank to the extent that post the infusion the state-owned lender holds 49 per cent shareholding in the bank. There will be two nominee directors appointed by SBI on the board of Yes Bank as well.

Also read: Yes Bank employees' jobs secured for at least a year

Also read: Who will run Yes Bank after restructuring?

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