Yes Bank crisis: Depositors throng bank’s cashless ATMs, branches

March 7, 2020 6:00 AM

Net banking facilities were down as soon as the announcement was made by the regulator and the government on Thursday night.

yes bank, yes bank crisisMany account holders of Yes Bank were unable to withdraw or transfer money on Friday from branches either. (Reuters)

By Ankur Mishra

A day after the government imposed a cap of Rs 50,000 on withdrawals, depositors of Yes Bank discovered that it was not as easy to withdraw money through any banking channel. While the ATMs were out of cash, the bank’s net banking page had a promising message, “We will be back soon…” Due to heavy traffic on its net banking system, depositors were informed that their transactions could not be processed.

Many account holders of Yes Bank were unable to withdraw or transfer money on Friday from branches either. A representative of the bank confirmed that customers would not be able to withdraw money either from Yes Bank, or other bank ATMs. Many depositors who rushed to branches to withdraw cash had to return empty-handed as the bank employees said there was no cash to dispense on Friday. Customers were given tokens and asked to return the next day. “We are not able to withdraw our own money from anywhere including branch now,” Mahesh Sharma told FE at the Nariman Point branch of Yes Bank.

The Reserve Bank of India (RBI) on Thursday capped withdrawals by depositors at Rs 50,000. The central bank had superseded the board of Yes Bank late on Thursday night and appointed Prashant Kumar as the bank’s administrator. Kumar is the former deputy managing director and CFO of State Bank of India.

Net banking facilities were down as soon as the announcement was made by the regulator and the government on Thursday night. Upon logging into accounts, depositors found the same reassuring message, “We will be back soon.” ATMs had long long queues, but there was little cash to dispense. Customers of Yes Bank were angered when they discovered that money could not be withdrawn from ATMs of other banks as well. A branch representative told FE that ATMs and credit cards of Yes Bank would not work and the only way to withdraw money was though the branches.

There was also confusion for customers on the fate of equated monthly installment (EMI) of loans linked to their bank accounts. To which a branch representative clarified that all the EMIs up to Rs 50,000 limit would be honoured by the bank, including withdrawals.

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