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Inward IMPS/NEFT services have now been enabled. You can make payments towards YES BANK Credit Card dues and loan obligations from other bank accounts. Thank you for your co-operation.@RBI @FinMinIndia
— YES BANK (@YESBANK) March 10, 2020
RBI closely monitors all the banks and hereby assures all depositors that there is no such concern of safety of their deposits in any bank. (2/2)
— ReserveBankOfIndia (@RBI) March 8, 2020
Yes Bank founder Rana Kapoor, arrested under money laundering charges, was remanded in the Enforcement Directorate's custody till March 11 by a Mumbai court on Sunday. Kapoor, 62, was arrested by the ED under provisions of the Prevention of Money Laundering Act (PMLA) here around 3 am on Sunday as he was allegedly not cooperating in the probe, officials earlier said.
The ED produced Kapoor before a holiday court which remanded him in the probe agency's custody till March 11.
ED arrests Yes Bank founder Rana Kapoor under money laundering charges in Mumbai: Officials
— Press Trust of India (@PTI_News) March 8, 2020
Q. Can I withdraw money from my account?
A. During the moratorium period, the customers can use ATMs and Branches to withdraw a total of Rs 50,000 from their accounts which they are holding in the same capacity and same right.
Q. Are the YES BANK ATMs functioning?
A. Yes, ATMs are functional. Click here to locate the ATM near you.
Q. Can I use my YES BANK Debit Card at other bank ATMs?
A. You can now make withdrawals using your YES BANK Debit Card both at YES BANK and other bank ATMs to make withdrawals up to a total of Rs 50,000 from your accounts which you hold in the same capacity and same right.
Q. Is the prescribed limit of Rs 50,000 per day limit or an aggregate limit in the entire moratorium period?
A. The prescribed limit of Rs 50,000 is an aggregate limit for the entire moratorium period i.e. w.e.f. 6:00 pm on March 5 2020 till April 3rd 2020. The customers will be allowed to withdraw a total of Rs 50,000 (through all channels and across all products) from their accounts which they are holding in the same capacity and same right.
Q. If I have one account in the name of A and another in the name of A and B (joint account holders’), will I be allowed to withdraw Rs 50,000 each from these two accounts?
A. You will be allowed to withdraw a total of Rs 50,000 from both the accounts put together as you are holding these accounts in the same capacity and same right.
Q. Is the Rs 50,000 limit at Customer ID level or at account level?
A. The prescribed limit of Rs 50,000 is at Customer ID level (same capacity and same right).
Q. Can I get DD issued from my account? Will the amount of DD be included in my overall withdrawal limit of Rs 50,000?
A. Yes Bank clearing is currently suspended & DD/Cheque will not get presented in clearing by other Banks till further instructions or till reinstatement of clearing activities.
Q. Am I allowed to do RTGS/NEFT transactions from my account?
A. Online remittances including RTGS/NEFT are suspended as of now
Q. I have EMIs linked to my account. Will those be honoured?
A. All clearing activities are suspended as of now. Your EMIs will be honored up to the prescribed limit subject to reinstatement of clearing activities.
Q. What will happen to the cheques that I have written and issued to my clients?
A. All clearing activities are suspended as of now as per the directive. Your cheques already issued will not be honored till the clearing activities are restarted or further directive from regulator.
Q. I have deposited a cheque in my account at Yes Bank counter/drop box. Will that transaction go through?
A. All clearing activities are suspended currently. Yes Bank DD/cheques will not be presented in clearing till further instructions or till reinstatement of clearing activities.
Q. Am I allowed to raise a stop payment request?
A. Yes. You will be able to stop a payment which has already been initiated.
Q. Am I allowed to operate/access locker facilities?
A. Yes, you will be allowed to access your locker during this time period.
An official familiar with the matter had told BloombergQuint on Friday that Yes Bank was working to reconfigure systems to ensure that the Rs 50,000 withdrawal limit is honoured.
Welcome aboard @PhonePe_! Delighted to join hands with you ! Thanks to team @NPCI_NPCI for swift nod to this integration. We at #ICICIBANK stand in solidarity with @PhonePe_ and other partners to ensure seamless continuity of banking & digital ecosystem. https://t.co/XvIyOQAPyh
— ICICI Bank (@ICICIBank) March 7, 2020
Exhausted but exhilarated that we are back fully! After a gruelling 24 hours UPI is fully restored on PhonePe. Many to thank, but we are all just happy to have resumed @PhonePe_ services for our loyal users and merchants! @_sameernigam https://t.co/PFdOzWSruc
— Rahul Chari (@rahulchari9) March 6, 2020
Three mutual fund houses UTI MF, Nippon India MF and PGIM India MF on Friday decided to side-pocket their exposures to Yes Bank bonds following the rating downgrade of troubled private lender's debt instruments.
This is subject to approval from the board of trustees of respective fund houses.
The move will prevent the distressed assets from damaging the returns generated from more liquid and better-performing assets.
The development comes following the downgrade of debt instruments of Yes Bank to 'D', which is below investment grade, by rating agency ICRA Ltd.
In a statement, UTI MF said it has proposed to create a segregated portfolio in respect of debt securities of Yes Bank in its two schemes — UTI Credit Risk Fund and UTI Medium Term Fund — effective from Friday, subject to approval from the Board of Trustees.
Nippon India MF has also proposed to create segregated portfolio of securities of Yes Bank held in the schemes with effect from Friday.
The Enforcement Directorate has raided Yes Bank Director Rana Kapoor’s Mumbai residence, officials told PTI.
The officials said the raid is being carried out at Kapoor’s Samudra Mahal residence in the western metropolis. The action is being conducted under the Prevention of Money Laundering Act and is aimed at collecting more evidence.
The central agency is probing Kapoor’s role in connection with the disbursal of a loan to a corporate entity and the subsequent alleged kickbacks that were reportedly received in his wife’s accounts.
Some other alleged irregularities are also under the agency’s scanner, they added.
Moody's Investors Service has downgraded Yes Bank's rating following the Reserve Bank of India imposing a 30-day moratorium that prevents the lender from making payment to its creditors.
"The ratings remain under review, with the direction uncertain," the ratings agency said, downgrading Yes Bank’s long-term foreign-currency issuer rating to Caa3 from B2. Moody's has also downgraded the bank's long-term foreign and local currency bank deposit ratings.
ICRA Ltd. too downgraded Yes Bank ratings to D. About Rs 52,611.70 crore-worth of bonds of bonds were downgraded.
SBI will acquire a 49 percent stake in the private lender at not less than Rs 2,450 crore, according to a draft rescue plan proposed by RBI after seizing control of the struggling private lender citing its poor financial position.
Use your Debit & Credit cards and PhonePe Wallet to make payments now on #PhonePe. pic.twitter.com/ngB5Hefq0c
— PhonePe (@PhonePe_) March 6, 2020
Paytm Payments Bank has restricted transaction settlements, including those made using Unified Payments Interface, into Yes Bank accounts to safeguard their users’ money.
“Though many third-party apps that rely on Yes Bank have also been affected, the UPI ecosystem has been designed in a way where customers can continue using other UPI apps to transact on UPI," it said in a statement on Friday.
After Finance Minister Nirmala Sitharaman’s press conference on the Yes Bank crisis, the private lender’s RBI-appointed administrator Prashant Kumar said solutions are being worked upon for revival “well before" the moratorium period of 30 days ends.
Kumar, a former chief financial officer of State Bank of India, also assured depositors that their money is safe and there is no reason to panic.
"The current moratorium has been brought into effect keeping the depositors' interest in mind and towards restoring their confidence. A solution is being worked upon to revive the Bank well before the moratorium period of thirty days ends," Kumar said in a statement issued by Yes Bank.
The Reserve Bank of India said State Bank of India will pick up 49 percent stake in Yes Bank under the reconstruction plan by acquiring shares of face value Rs 2 each at a premium of Rs 8 apiece.
More key highlights of the draft reconstruction plan:
The Reserve Bank of India has announced a scheme of reconstruction for Yes Bank.
Key highlights of the draft reconstruction plan:
Yes Bank is reworking systems to meet the Rs 50,000 withdrawal limit, said a senior official familiar with the matter. He explained that once this is done, credit cards, debit cards and ATM systems can be brought back online.
The following is the latest update as of 4:00 p.m. on Friday:
Security at Yes Bank headquarters, its branches and ATMs across Mumbai was tightened to avert any untoward incident, as hundreds of account holders of the crisis-hit private lender rushed to withdraw money, an official said on Friday.
Account holders rushed to branches of the bank and their ATMs to withdraw money on Friday morning, leading to chaos at many centres, including the one in south Mumbai's Fort area.
"We have deployed police personnel outside the bank headquarters, its branch offices and ATM centres in the city to avert any kind of law and order issue," a spokesperson of the Mumbai Police said.
Source: PTI
According to two executives from the ATM industry, the RBI has informed the bank to shut its ATMs and that cash has to be disbursed to customers only through the branches.
Since the NPCI has taken the banks’ ATMs offline and bank customers can’t withdraw cash from other ATMs, there is no need to replenish the ATMs immediately, unless this is reversed, they said.
BharatPe has said that it will be replacing existing QR codes, that were tied to Yes Bank’s network till date but are now inactive, with QR Codes powered by ICICI bank within the next two days.
A senior executive with a cash management company’s said that ATMs were operational till early morning, after which it seems NPCI and or the bank decided to take them offline. It is likely that they were not able to enforce the Rs 50,000 limit as there was overlap between the branch withdrawal and ATMs.
Senior official at NPCI, speaking on conditions of anonymity, says that Yes Bank's point of sale terminals, debit cards and credit cards have been disconnected as of now.
The NPCI is currently working on a resolution process and should be able to sort the situation out, soon, he added.
Radhika Gupta, Edelweiss AMC
Vijai Mantri, JRL Money
We @EdelweissAMC shall make sure that redemption payouts are not made to Yes Bank accounts tomorrow onwards. Please contact us and change your bank account to an alternate account. We will facilitate it.
— Radhika Gupta (@iRadhikaGupta) March 5, 2020
Dear @PhonePe_ customers. We sincerely regret the long outage. Our partner bank (Yes Bank) was placed under moratorium by RBI. Entire team's been working all night to get services back up asap. We hope to be live in a few hours. Thanks for your patience. Stay tuned for updates!
— Sameer.Nigam (@_sameernigam) March 6, 2020
A day after the Reserve Bank of India placed Yes Bank Ltd. under moratorium and restricted deposit withdrawals to Rs 50,000, barring special circumstances, depositors are seen at branches trying to understand their options.
BloombergQuint visited three branches of Yes Bank early morning on Friday and managed to speak to more than 10 depositors, most of whom requested anonymity.
While a few depositors walked in to withdraw money from the ATMs from 7 a.m. onward they could not withdraw cash as the ATMs were not stocked. Depositors began lining up outside the branch only up at around 9:30 a.m., when the branch was officially opened.
One person said that they had to request their office to permit them one day’s leave in order to withdraw the full Rs 50,000 from their account for their expenses in the coming week, because they did not know how long it would take at the branch.
One depositor, at the Worli branch, said that they were very happy with the services the bank had provided them over the last few years. But since the imposition of the moratorium on March 5 there has been no communication from the bank via text message or emails, which is disappointing, they said. This person added that though they have another bank account with a public sector bank, the fact that net banking services have been inaccessible since Thursday night is concerning.
While the rules of the moratorium allow depositors to withdraw up to Rs 5 lakh in exceptional cases, two depositors said they have to make large payments in the coming week that do not fall under these categories. This include investments and real estate related transaction, they said, adding that even if they were to file a request there is no certainty on whether it would be approved by the bank and the RBI and in time.
BloombergQuint managed to speak to two branch staff who said that they neither have received any formal communication from their seniors nor from the bank’s management on the way forward and whether the ATMs would be replenished during the day (March 6) or over the weekend.
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