{"id":3903,"date":"2021-09-01T11:13:35","date_gmt":"2021-09-01T11:13:35","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=3903"},"modified":"2021-09-01T11:13:35","modified_gmt":"2021-09-01T11:13:35","slug":"overview-on-collapse-of-yes-bank","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/overview-on-collapse-of-yes-bank\/","title":{"rendered":"Overview on collapse of Yes Bank"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-3904\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/09\/yes-bank-Delhi.jpg\" alt=\"Overview on collapse of Yes Bank\" width=\"1200\" height=\"749\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/09\/yes-bank-Delhi.jpg 1200w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/09\/yes-bank-Delhi-300x187.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/09\/yes-bank-Delhi-1024x639.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/09\/yes-bank-Delhi-768x479.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/09\/yes-bank-Delhi-800x499.jpg 800w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69da667ebda6d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69da667ebda6d\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/overview-on-collapse-of-yes-bank\/#Complete_Understanding_on_collapse_of_Yes_Bank\" title=\"Complete Understanding on collapse of Yes Bank\">Complete Understanding on collapse of Yes Bank<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/overview-on-collapse-of-yes-bank\/#BRIEF_INTRODUCTION\" title=\"BRIEF INTRODUCTION\">BRIEF INTRODUCTION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/overview-on-collapse-of-yes-bank\/#PROPOSED_REVIVAL_PLAN\" title=\"PROPOSED REVIVAL PLAN\">PROPOSED REVIVAL PLAN<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/overview-on-collapse-of-yes-bank\/#MORATORIUM\" title=\"MORATORIUM\">MORATORIUM<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/overview-on-collapse-of-yes-bank\/#IMPLICATIONS_FOR_DEPOSITORS\" title=\"IMPLICATIONS FOR DEPOSITORS\">IMPLICATIONS FOR DEPOSITORS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/overview-on-collapse-of-yes-bank\/#IMPLICATIONS_FOR_BORROWERS\" title=\"IMPLICATIONS FOR BORROWERS\">IMPLICATIONS FOR BORROWERS<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Complete_Understanding_on_collapse_of_Yes_Bank\"><\/span><span style=\"color: #ff0000;\"><strong>Complete Understanding on collapse of Yes Bank<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"BRIEF_INTRODUCTION\"><\/span><span style=\"color: #000080;\">BRIEF INTRODUCTION<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>YES Bank has joined the growing list\u00a0of financial\u00a0institutions\u00a0like\u00a0IL&amp;FS, DHFL, PMC bank that have come under the cloud for serious non-governance\/compliance issues.\u00a0a continual\u00a0decline\u00a0within the\u00a0asset quality\u00a0of 1\u00a0of\u00a0the foremost\u00a0popular retail banks of recent times, prompted RBI\u00a0to come\u00a0up with a series of measures\u00a0to keep up\u00a0stability\u00a0within the\u00a0financial sector.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"PROPOSED_REVIVAL_PLAN\"><\/span><span style=\"color: #000080;\">PROPOSED REVIVAL PLAN<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>On 5th March 2020, YES Bank was placed under a moratorium by the RBI, which resulted in change of control of bank for 30 days, in order to come up with a revival plan for the collapse of YES bank. RBI is in discussion with SBI and LIC Housing Finance\u00a0to take\u00a0an investment stake\u00a0within the\u00a0bank and revive the bank with\u00a0a new\u00a0Board of Directors\u00a0in place.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"MORATORIUM\"><\/span><span style=\"color: #000080;\">MORATORIUM<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Moratorium\u00a0means\u00a0the conventional\u00a0operations of the banks\u00a0are\u00a0suspended temporarily for a month. So, what can the moratorium\u00a0and the\u00a0revival mean for various stakeholders of Yes Bank.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"IMPLICATIONS_FOR_DEPOSITORS\"><\/span><span style=\"color: #000080;\">IMPLICATIONS FOR DEPOSITORS<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-3906\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/09\/yes-bank.jpg\" alt=\"Complete Understanding on collapse of Yes Bank\" width=\"2100\" height=\"1351\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/09\/yes-bank.jpg 2100w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/09\/yes-bank-300x193.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/09\/yes-bank-1024x659.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/09\/yes-bank-768x494.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/09\/yes-bank-1536x988.jpg 1536w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/09\/yes-bank-2048x1318.jpg 2048w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/09\/yes-bank-800x515.jpg 800w\" sizes=\"(max-width: 2100px) 100vw, 2100px\" \/><\/p>\n<ol>\n<li>Depositors\u00a0aren&#8217;t\u00a0allowed to withdraw\u00a0over\u00a0\u20b950,000\/- from their account till 4th April 2020.<\/li>\n<li>The limit applies\u00a0to all\u00a0accounts\u00a0within the\u00a0name of\u00a0an individual\u00a0across savings, current and time deposits.<\/li>\n<li>RBI allows for withdrawal of up to \u20b95 lakh for depositors for specific cases like payment of medical bills,education\u00a0expenses, etc. However,\u00a0the method\u00a0to access this amount is yet to be clarified\u00a0in a\u00a0more detailed RBI order detailed order on this issue.<\/li>\n<li>The limit to withdraw money\u00a0could also be\u00a0worrisome for depositors who have\u00a0one\u00a0account with Yes Bank and hence, their savings\u00a0could also be\u00a0stuck\u00a0within the\u00a0account till the time the bank decides to lift up the moratorium.<\/li>\n<li>A moratorium on\u00a0current account\u00a0transactions may make it difficult\u00a0for small\u00a0traders and businessmen\u00a0to hold\u00a0their daily business, especially so if they don\u2019t have another\u00a0current account. Small traders and businessmen should immediately inform their counter parties\u00a0to prevent\u00a0any due cheque payments in Yes Bank.<\/li>\n<li>Salary account holders who received their salary on 1st of March,\u00a0won&#8217;t\u00a0be\u00a0ready to\u00a0spend\u00a0over\u00a0\u20b950,000 from their accounts. Salary account holders should immediately inform their employers to shift their accountsto a different\u00a0bank.<\/li>\n<li>Deposit insurance\u00a0is on the market\u00a0only up to \u20b95,00,000 of deposits ofan individual\u00a0across all accounts of the bank. RBI has though assured to safeguard the interests of depositors.<\/li>\n<li>Depositors of Yes Bank can withdraw\u00a0the money\u00a0using the bank\u2019s\u00a0debit card\u00a0and from its ATM. However, during the moratorium withdrawal of deposits through cheque, RTGS, NEFT, online facilities and demand draft has been suspended.<\/li>\n<li>Depositors are allowed to issue\u00a0order\u00a0instructions on any cheques issued from their Yes Bank Accounts.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"IMPLICATIONS_FOR_BORROWERS\"><\/span><span style=\"color: #000080;\">IMPLICATIONS FOR BORROWERS<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-3908\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/09\/NPA-History-of-Yes-Bank-.jpg\" alt=\"NPA-History of Yes Bank \" width=\"1280\" height=\"720\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/09\/NPA-History-of-Yes-Bank-.jpg 1280w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/09\/NPA-History-of-Yes-Bank--300x169.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/09\/NPA-History-of-Yes-Bank--1024x576.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/09\/NPA-History-of-Yes-Bank--768x432.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/09\/NPA-History-of-Yes-Bank--800x450.jpg 800w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/p>\n<ol>\n<li>Yes Bank borrowers should\u00a0still\u00a0repay their EMIs regularly to avoid any delay or default in repayment.\u00a0this can be\u00a0extremely important\u00a0to scale back\u00a0any adverse impact on their credit score.<\/li>\n<li>Home loan\u00a0Borrowers of Yes Bank\u00a0must\u00a0bear in mind that the bank\u00a0might not\u00a0be\u00a0ready to\u00a0make the tranche payment for builders.\u00a0it&#8217;s\u00a0advisable they clarify with the bank, if\u00a0they&#8217;d\u00a0make their committed disbursement to the builders.\u00a0they must\u00a0also\u00a0try and\u00a0arrange\u00a0for extra\u00a0funds to avoid a\u00a0neglect\u00a0any committed\u00a0home loan\u00a0payments.<\/li>\n<li>Gold Loan Borrowers of Yes Bank should be\u00a0ready to\u00a0repay their loan and\u00a0dispose of\u00a0their pledged Gold\u00a0because the\u00a0moratorium\u00a0is merely\u00a0on withdrawal of deposits from the bank.<\/li>\n<li>Personal loan\u00a0Borrowers of Yes Bank have little\u00a0to stress\u00a0as\u00a0they will\u00a0continue\u00a0with their regular EMI repayments to bank and\u00a0make sure that\u00a0there&#8217;s\u00a0no delay or default in payments.<\/li>\n<li>Yes Bank customers with\u00a0a safety\u00a0locker deposit\u00a0for his or her\u00a0gold\u00a0and jewellery\u00a0can\u00a0still\u00a0operate their lockers\u00a0because the\u00a0bank continues with its regular working hours.\u00a0they&#8217;re\u00a0liberated to\u00a0withdraw their jewelry from the lockers.<\/li>\n<\/ol>\n<p>Even as the moratorium is for a month, what\u00a0has to\u00a0be seen\u00a0is that the\u00a0final draft of revival plan.\u00a0it&#8217;s\u00a0expected that RBI will relax the conditions to withdraw\u00a0the money\u00a0from deposit accounts\u00a0in an exceedingly\u00a0gradual manner to avoid a run down on the bank.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Complete Understanding on collapse of Yes Bank BRIEF INTRODUCTION YES Bank has joined the growing list\u00a0of financial\u00a0institutions\u00a0like\u00a0IL&amp;FS, DHFL, PMC bank that have come under the cloud for serious non-governance\/compliance issues.\u00a0a continual\u00a0decline\u00a0within the\u00a0asset quality\u00a0of 1\u00a0of\u00a0the foremost\u00a0popular retail banks of recent times, prompted RBI\u00a0to come\u00a0up with a series of measures\u00a0to keep up\u00a0stability\u00a0within the\u00a0financial sector. PROPOSED REVIVAL PLAN &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[695],"tags":[865],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/3903"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=3903"}],"version-history":[{"count":2,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/3903\/revisions"}],"predecessor-version":[{"id":3910,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/3903\/revisions\/3910"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=3903"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=3903"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=3903"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}