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YES Bank crisis: You can withdraw cash up to Rs 5 lakh; here's how

To allay the fears of the YES Bank depositors, RBI Governor Shaktikanta Das says the YES Bank revival process will be done "very swiftly, very fast"

Manoj Sharma | March 6, 2020 | Updated 13:17 IST
YES Bank crisis: You can withdraw cash up to Rs 5 lakh; here's how
YES Bank news: There's no restriction on pay orders or drafts issued by YES Bank before March 5

YES Bank depositors can't withdraw more than Rs 50,000 for a month, but the RBI may allow YES Bank depositors to withdraw up to Rs 5 lakh in case of an 'emergency'. Those seeking more than Rs 5 lakh will have to submit a written request to Reserve Bank Administrator for YES Bank, Prashant Kumar, or the panel led by him.

Also read: YES Bank Crisis Live Updates: It'll be very swift, very fast, RBI Governor on lender's revival process

The conditions on which the withdrawal limit can be relaxed include:

  • Funds for medical treatment of the bank account holder or those dependent upon him or her.
  • Funds for higher education of the depositor or those dependent upon the account holder. These funds can be availed for education in India or abroad.
  • For paying certain mandatory expenses like "marriage" or any other ceremonies of the acocunt holder or people dependent upon him/her.
  • People can also seek funds in case of any unavoidable circumstances. The account holder will have to clearly mention the reason before applying for funds.

Notably, there's no restriction on pay orders or drafts issued by YES Bank before March 5.

To allay the fears of the YES Bank depositors, RBI Governor Shaktikanta Das said on Friday: "We have issued two press statements yesterday. They explain in detail the background of our decision. It (the YES Bank revival process) will be done very swiftly, very fast. Thirty days which we have given is the outer limit. You'll soon see a scheme to revive YES Bank."

The apex bank has said the action was taken to "to protect the interest of the depositors and in public interest".

Five months before, the apex bank had also placed similar curbs on withdrawal of cash from Punjab and Maharashtra Co-operative Bank (PMC Bank). Since then, the RBI increased the deposit withdrawal limit four times. The initial amount allowed by RBI was just Rs 1,000. This was increased to Rs 10,000 per depositor and later to Rs 25,000. The RBI again revised it to Rs 40,000 and later to Rs 50,000 per depositor.

According to reports, the government has asked SBI and life insurance behemoth LIC to collectively pick up a 49 per cent stake in Yes Bank. The SBI board has given the largest lender an "in-principle" approval to invest in the capital-starved Yes Bank. The central board of SBI discussed the matter at a meeting on Thursday, it informed the exchanges. "The matter in regard to Yes Bank was discussed at the meeting of the central board of bank on Thursday and an in-principle approval has been given by the board to explore investment opportunity in the bank," the SBI board stated.

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