Yes Bank Withdrawal Cap To Be Lifted Today: All You Need To Know

The lifting of moratorium would mean that apart from the restrictions on withdrawal limit and other banking services being done away with

Yes Bank Withdrawal Cap To Be Lifted Today: All You Need To Know

Yes Bank CEO-designate Prashant Kumar said there are absolutely no worries on liquidity front

Crisis-hit Yes Bank is set to resume full banking operations starting 6 pm today, paving way for its troubled depositors to make withdrawals without any restrictions. The Reserve Bank of India (RBI) had earlier superceded Yes Bank's board and imposed a moratorium on the beleaguered private sector bank, permitting customers to only take out up to Rs 50,000 from their accounts in the bank with certain exceptions. Several private and public sector financial institutions including the country's largest lender by assets, State Bank of India (SBI), have come together to infuse capital into Yes Bank to help it stabilise as part of the RBI-backed rescue plan.

Here is all you need to knowabout lifting of moratorium at 6 pm today

  1. The lifting of moratorium would mean that apart from the restrictions on withdrawal limit and other banking services being done away with, the bank would also be allowed to advance loans which had also been barred by the central bank.

  2. In a tweet on Monday, Yes Bank said: "Visit any of our 1,132 branches from Mar 19, 2020, post commencement of banking hours to experience our suite of services." It also added that the online and digital services of the bank will also be available from 6 pm tomorrow. The development follows government's last week notification regarding the restructuring of Yes Bank, as proposed by the Reserve Bank of India (RBI).

  3. Yes Bank CEO-designate Prashant Kumar on Tuesday said there are absolutely no worries on the liquidity front and that complete operational normalcy would be restored from 6 pm on Wednesday.

  4. "We have made adequate precautions. All our ATMs are full with cash. All our branches have adequate supply of cash. So, from Yes Bank side, there is absolutely no issue on the liquidity front," Kumar told reporters, in a press briefing on Tuesday.

  5. He also clarified that there would not be any need to depend on external sources for liquidity.

  6. "But if there is a case, then those liquidity lines are adequately available to the bank," he said and assured depositors that there was no need to worry about the safety of their deposits.

  7. After the moratorium is lifted, Mr Kumar said, all customers of the bank would be able to enjoy the entire banking services.

  8. According to Mr Kumar, only one-third of the bank's customers, who could have withdrawn funds during the moratorium period, have taken out money to the extent of Rs 50,000.

  9. Meanwhile, on Tuesday, Yes Bank stocks surged over 70 per cent, a day after Global rating agency Moody's upgraded its outlook for the bank and the Reserve Bank Governor assured that the bank's revival plan is credible and the central bank will infuse more liquidity if required. Moody's on Monday upgraded Yes Bank's ratings and changed the lender's outlook to positive.

  10. Moody's Investors Service upgraded the bank's long-term foreign currency issuer and foreign currency senior unsecured MTN programme ratings to Caa1 from Caa3 and (P)Caa1 from (P)Caa3 respectively, among other upgrades.



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