The RBI's decision of capping Yes Bank depositors' withdrawals at Rs 50,000 per account for a month has several ramifications for the private lender's customers.
The hassled depositors of Yes Bank are complaining that the bank had not intimated them about the capping of withdrawal limit. Many of the customers of the private sector lender are unable to carry out online transactions while many others are complaining that the ATMs have run out of cash.
Several depositors are claiming that they are unable to withdraw money from the ATMs as the machines have run out of cash because many people have already drawn money with no communication from the bank whatsoever to solve the crisis situation.
Several depositors of the bank took to Twitter to share screenshots of failed transactions.
Here are some of them.
Atleast you were able to login now its showing service unavailable. pic.twitter.com/qkid53fZ7q- @TheQaGuy (@abhishekroy2007) March 6, 2020
Meanwhile, brokerage firms like Zerodha have cancelled fund withdrawal requests linked to Yes Bank accounts and are also requesting customers to switch to other bank accounts so that their funds don't get blocked.
"We have cancelled all fund withdrawal requests made by clients to their YES bank accounts so that the money doesn't get blocked. Please change, if your primary bank account is YES, to any other and withdraw the funds," a tweet by Nithin Kamath, Founder and CEO of Zerodha tweeted on Wednesday.
The brokerage firm also explained the procedure for changing the primary bank account liked with the brokerage.
"To change your primary bank account, you are required to provide us with a signed ''Account Modification Form along with a proof of the new Bank Account you want to link. Please note that Rs 25+ 18 per cent GST will be charged for the modification," according to Zerodha.
We have cancelled all fund withdrawal requests made by clients to their YES bank accounts so that the money doesn't get blocked. Please change, if your primary bank account is YES, to any other and withdraw the funds. https://t.co/p85cBc1SeZ- Nithin Kamath (@Nithin0dha) March 5, 2020
The accepted bank proof is any of the documents such as personalised cancelled cheque (name printed on the cheque leaf), bank statement (with IFSC Code and MICR No.) (self-attested copy), bank passbook statement (self-attested copy).
The RBI on Thursday evening imposed a moratorium on YES Bank, superseded its board, and imposed a withdrawal limit of Rs 50,000. The central bank said it was "satisfied that in order to protect the interest of the depositors and in public interest, it is necessary to issue certain directions to YES Bank".
"The Reserve Bank came to the conclusion that in the absence of a credible revival plan, and in public interest and the interest of the bank's depositors, it had no alternative but to apply to the central government for imposing a moratorium under Section 45 of the Banking Regulation Act, 1949," the RBI said in a statement late in the evening.