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2 minutes read

All You Need To Know If You Have Salary Account, Loan EMI, SIP & Insurance Payments

| Published on March 8, 2020

On Thursday evening, the central bank of India dropped a bombshell on Yes Bank. For everyone, it came as a surprise that India’s fourth-largest private bank is starving for cash. RBI put a cap on deposit withdrawals and limited it to Rs 50,000 per customer till April 3, 2020. Account holders are worrying whether the moratorium imposed by RBI turns into total shutdown.

Well, considering the speech of the Finance Minister following the move by the RBI and willingness of SBI to bail out Yes Bank, it does not look like that bank will come to the situation of total shutdown. The bank still has over Rs 3.45 lakh crore assets and a deposit base of more than Rs 2 lakh crore. Also, RBI has announced in public domain a draft scheme of the revival of Yes Bank.

What exactly will happen in future no one knows, but if you have a salary account or salary linked with Yes Bank account, loan EMI, SIP and other linked with Yes Bank, here are few things you need to know.

EMI, SIP and insurance payments will be auto-debited by the bank
If you have monthly loan EMI, SIP payment, and insurance payment, it will be debited automatically by the bank. Well, if these payments are below than Rs 50,000, then there will be no trouble. But if it is more than Rs 50,000, you may face some trouble.

Salary account
Well, for time being you have to manage your expenses as you cannot withdraw more than Rs 50,000.

Mutual Funds
If customers have to pay SIPs in mutual funds from the Yes Bank account, they can look up to the mutual fund houses. Banks like Kotak Mahindra Bank have already started processing redemption requests to help out the customers access their funds.

Medical emergencies, education fee and wedding is exempted
In case of a medical emergency, education fee, and wedding, account holders can withdraw Rs 5 lakh.

Insurance cover
In case of total shutdown, an account holder will get Rs 5 lakh per depositor across all accounts including lockers.

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