Yes Bank Crisis: Relief For Account Holders As ATMs Resume Operation After 24-Hours

Even as RBI and Finance Minister Nirmala Sitharaman herself have assured that money of account holders was safe with the bank and fast and smooth resolution is being worked upon, depositors continue to queue up outside branches of the troubled private lender.

Account holders stand in a queue to withdraw money from Yes Bank at Vashi in Navi Mumbai. (Image: PTI)

New Delhi: In what might come as a slight relief to Yes Bank account holders, ATMs of the private lender have become function on Friday evening more than 24 hours after the bank became inoperative following the moratorium imposed by the Reserve Bank of India (RBI). The moratorium started on Thursday and will continue for a month. From Friday, depositors at India's fourth largest private lender were not allowed to withdraw more than Rs 50,000 of their own hard-earned money. The RBI imposed these restrictions late on Thursday in a move which some say was overdue, leaving the depositors in a tizzy. For the next 30 days, Yes Bank will also not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment. “We would like to inform you that our ATMs are now functional. You can locate the ATM nearest to you here,” said a notification by the bank offering to locate ATM kiosks for its customers.

We would like to inform you that our ATMs are now functional. You can locate the ATM nearest to you here: https://t.co/2AQrAqmd3F@FinMinIndia @RBI

— YES BANK (@YESBANK) March 6, 2020

Following the announcement, long queues were seen outside several ATMs kioks and Yes Bank branches across the country. Feared by the meltdown, account holders rushed to the ATMs to withdraw cash feeling threat to their deposits. Several customers are now contemplating opening up new accounts in other banks. There were even cases of heated exchange between bank staff and customers, who failed to withdraw money. Even as RBI and Finance Minister Nirmala Sitharaman herself have assured that money of account holders was safe with the bank and fast and smooth resolution is being worked upon, depositors continue to queue up outside branches of the troubled private lender. Yes Bank also assured customers safety of their deposits. WATCH REPORT | Yes Bank Crisis Leads To Some Serious Questions On Banking System The restructuring scheme will be fully effective within 30 days, Sitharaman said earlier in the day adding that the State Bank of India has expressed willingness to invest in Yes Bank. The Finance Minister also said that employment and salary of Yes Bank employees has been assured for one year. "Our salary gets credited on 21st of every month. I am a little worried about my upcoming salary as I have a salary account with Yes Bank. I am going to provide details of my other bank account to HR today so that my money doesn't get blocked," an MNC employee who was standing in a queue at one of the branches in suburban Mulund told news agency PTI. The bank's depositors are allowed to withdraw cash up to Rs 50,000 from their accounts during the 30-day moratorium period, according to a government gazette. The withdrawal limit, however, can be relaxed up to Rs 5 lakh in case of medical emergencies, higher education and for expenses related to marriages, it said. Yes Bank has 1,000 branches across the country. To streamline the withdrawal process, some of the branches are giving limited tokens to the customers. Security was also tightened at the bank's headquarters, its branches and ATMs across the city. It's not just salaried customers, but entrepreneurs and small businessmen are also affected. On Thursday, the SBI board gave its "in-principle" approval to exploring investment opportunities in Yes Bank. The customers said even the mobile and internet banking are shutdown. This situation reminds one of the plights of depositors of Punjab and Maharashtra Cooperative Bank six months ago. (With inputs from PTI)