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Yes Bank account holders could be allowed to withdraw ₹5 lakh during emergency

NEW DELHI :
Following a moratorium placed by the Reserve Bank of India (RBI) over the lender’s financial health, Yes Bank account holders cannot withdraw more than ₹50,000 for a month. The rule applies to anyone who has a savings, current or any other deposit account in Yes Bank. Even if you have more than one account in the bank, the total withdrawal limit cannot cross the ₹50,000 cap.

However, according to the finance ministry notification the RBI can allow withdrawal of upto ₹5 lakh but only under specific circumstances like payment if medical bills, higher education expenses, etc. The RBI is yet to issue a detailed order on this issue.

RBI is allowed to hike withdrawal limit for Yes Bank depositors under the following circumstances:

1) For medical treatment of the depositor or anyone dependent on him/her.

2) For the cost of higher education of the depositor or any dependents for education in India or even outside India.

3) To pay obligatory expenses in connection with marriage or other ceremonies of the depositor or his children or of any other dependents.

4) In connection with any other unavoidable emergency.

The finance ministry has also said that under such unforeseen circumstances, the maximum withdrawal cannot exceed ₹5 lakh or the actual balance lying to the credit of the account of such depositor, whichever is less.

Yes Bank account holders who want to apply the above provisions to withdraw more than ₹50,000 need to wait for a detailed RBI order which specifies the withdrawal rules.

The moratorium began from 6 pm yesterday and will run till April 3. “In terms of the provisions of the Banking Regulation Act, the Reserve Bank will explore and draw up a scheme in the next few days for the bank’s reconstruction or amalgamation and with the approval of the Central Government, put the same in place well before the period of moratorium of thirty days ends so that the depositors are not put to hardship for a long period of time,” RBI had said.

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