What to do if you have a Yes Bank account?

1. DO NOT PANIC

Yes Bank is not too-big-to-fail. But it is too-important-to-fail and the contagion impact would be far worse than what government can afford. Government will never let it fail. Hon. Finance Minister herself told the media and assured depositors and we have no reasons to not believe her.

2. Make alternate EMI arrangements

If your EMI is due to be debited from Yes Bank account, it will bounce if the amount is more than 50000. Make alternate arrangements to tide over the crisis immediately.

3. Redemption of mutual fund

If your mutual fund redemption is due, change the redemption bank account mandate from Yes Bank to any other bank so that the investment doesn’t get blocked. Several fund houses are already reaching out to customers to ensure it doesn’t happen.

4. Withdraw till limit

Over the next one month moratorium, a sum of Rs.50000 can be withdrawn. Withdraw the amount and wait for one month by which the amount would be increased in order to withdraw the remaining. In case of PMC Bank, the withdrawal limit imposed was of Rs.1000 which was increased to Rs.10000 and a similar scenario might play out.

5. PSU Banks merger

Keep in mind while choosing alternate PSU banks that from April 1st, Punjab National Bank (PNB), Oriental Bank of Commerce (OBC) and United Bank will merge together form the 2nd largest public sector bank in the country. Canara Bank and Syndicate Bank will merge and become 4th-largest public sector lender, while Union Bank of India will merge with Andhra Bank and Corporation Bank to build India’s 5th-largest lender. Indian Bank will merge with Allahabad Bank to make India’s 7th-largest PSB. Take this into account while making your choice.

ABW series

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