Yes Bank mobile and net banking down after RBI limits withdrawals to ₹50,000
- Yes Bank’s mobile and net banking services are down after the Reserve Bank of India limited withdrawals to ₹50,000.
- The moratorium will stay in effect for a month and the RBI may increase the limitation on a case-by-case basis.
- The apex bank points out that there is no reason for depositors to panic and that their interest will be fully protected.
“There has been no intimation to employees as well. Even after the notification there is no email or Whatsapp notification from the management,” an employee told Business Insider on the condition of anonymity.
“I tried to withdraw cash at around 8:00 pm but couldn't. Then tried to net banking and that failed too. That is when I realised there is something wrong,” he added
Sources told Business Insider that the downtime is likely temporary to make the requisite modifications to limit IMPS, NEFT, RTGS and fund transfers. Yes Bank is yet to respond to Business Insider’s request for comment as to why their online services are down.
One month moratorium
The moratorium will stay in effect for a month and the RBI may increase the limitation of ₹50,000 on a case-by-case basis, keeping room for unique facts and circumstances.
The board of Yes Bank has also been superseded with immediate effect, according to the statement by the Reserve Bank of India (RBI). Former CFO of India’s largest public sector bank State Bank of India (SBI) has been appointed as the administrator.
“The Reserve Bank came to the conclusion that in the absence of a credible revival plan — and in public interest, and the interest of bank’s depositors — it had no alternative but to apply to central government for imposing a moratorium,” said the RBI.
AdvertisementThe apex bank points out that there is no reason for depositors to panic and that their interest will be fully protected.
Yes Bank’s race to raise $2 billion
Today morning the bank’s share zoomed over 29% in the afternoon trade amid reports that the government has asked the State Bank of India (SBI) to lead a consortium to buy stake in the company.
Sources told ET that SBI and the Life Insurance Corporation of India (LIC) will acquire shares at ₹2 per share. The two state-run companies will acquire 49% stake for a total of ₹490 crore.
Yes Bank had originally sought a 45-day extension in February after hitting the original 45-day deadline to furnish its quarterly results with the Securities and Exchange Board of India (SEBI). It said it required the extension to raise the required funds of $2 billion.
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