Yes Bank crisis: Here's some relief for customers

A step towards normalcy
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A step towards normalcy

Crisis-hit Yes Bank said on Tuesday that customers could now make payments towards their Yes Bank credit card and loans through other bank accounts, days after prominent banking services were curtailed after the RBI imposed a moratorium on the lender.

Reuters
A sigh of relief for customers
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A sigh of relief for customers

The announcement comes as panic gripped the bank's customers, who queued before ATMs and bank branches to withdraw money. They were also not even able to access Internet banking and other services like digital payments through another party's platform. Forex services and credit card purchases, among others, were also impacted.

Agencies
Crisis-hit 'Yes Bank'
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Crisis-hit 'Yes Bank'

The Reserve Bank of India had put a moratorium last week on the cash-strapped Yes Bank, imposed withdrawal restriction of Rs 50,000 only till April 3 and superseded its board through the appointment of an administrator. However, the bank has now said that its ATMs are fully up now and customers can withdraw the stipulated amount from other banks' ATMs as well.

Agencies
What can't be done during the moratorium period?
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What can't be done during the moratorium period?

During the moratorium period, Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.

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SBI comes to Yes Bank's rescue
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SBI comes to Yes Bank's rescue

As per the RBI's draft reconstruction scheme, State Bank of India will pick up a 49 per cent stake in the crisis-ridden Yes Bank under a government-approved bailout plan by infusing capital of Rs 2,450 crore. The bank's financial health is not sound as it has failed to raise enough capital under the new leadership of Ravneet Singh Gill, who took charge as the managing director and CEO from March last year.

Agencies

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