Employees of the Indian Railways, who hold salary accounts in Yes Bank, have been told to open new salary accounts, as the Bank’s financial position is not stable. Through a written communication, the employees have been directed to shift their salary accounts to other banks if they wanted to avoid any issues in the future.
With the Reserve Bank of India (RBI) placing Yes Bank under moratorium, due to its weak financial condition, the Bank’s inability to raise capital and handle potential losses has been made public. Yes Bank has been experiencing serious governance issues and practices of late, which have resulted in a steady decline in performance. Meanwhile, RBI has been discussing with the Bank’s management to come up with ways to improve its balance sheet and liquidity.
Yes Bank account holders have been barred from withdrawing over Rs 50,000 in a month, including EMI, credit card payments, and so on.
However, Yes Bank has conveyed that its inward real-time gross settlement (RTGS) service has been enabled so that customers are able to pay their credit card dues and fulfil their loan obligations from other bank accounts. It had earlier allowed its customers to use inward IMPS and NEFT services for the same. While RTGS can be used to make payments exceeding Rs 2 lakh, amounts below that can be paid via NEFT. Also, loan and credit card repayments to the Bank can be done via IMPS from other bank accounts.