- Yes Bank Ltd on Saturday, informed its customers in a late-night tweet that they can now withdraw money using their debit cards from all ATMs.
Yes Bank Ltd on Saturday, informed its customers in a late-night tweet that they can now withdraw money using their debit cards from all ATMs.
“You can now make withdrawals using your YES BANK Debit Card both at YES BANK and other bank ATMs. Thanks for your patience. @RBI @FinMinIndia,” the bank said in the tweet.
The development comes after the Reserve Bank of India (RBI) placed the crisis-hit lender under a moratorium, and capped deposit withdrawals at ₹50,000 across all their accounts combined, till 3 April.
The lender’s board was also superseded with immediate effect last Thursday.
This affected many Yes Bank customers who could not withdraw cash as the RBI announcement came to a halt as net banking, ATMs, and UPI payments did.
After queuing up at Yes Bank ATMs on Thursday night, on 6 March, many made a desperate rush for branches, but even the branches of the bank started to run out of cash causing customers distress. Additionally, mutual funds have avoided crediting funds to Yes Bank accounts to protect investors. Brokerages avoided credits to Yes Bank accounts, too.
Yes, Bank’s issues have impacted many fintech companies and their customers who were unable to use the payment services of the Unified Payment Interface (UPI).
All instruments qualifying as additional Tier 1 capital (AT1), issued by Yes Bank, have been permanently written down under the RBI-authored’ Yes Bank Ltd Reconstruction Scheme, 2020.’ The permissible share capital was increased to around 5,000 crores.
Under conditions imposed on the new investor, SBI, it is not allowed to reduce its stake to below 26 percent before three years are completed. Also, the state-owned bank is not allowed to terminate any employees at Yes Bank for at least one year, unless they are its key management staff.
SBI chairman Rajnish Kumar said it would be working with Yes Bank on an arm-length basis and there was no intention to merge both.
He told reporters on Saturday that SBI was also talking to other investors to have their equity in Yes Bank brought in. He put the number of such investors at 23 and said that those interested in investing at least 5 percent would fall under the ‘ fit and proper ‘ criteria of RBI.