Banks in India

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Modi government credited 15-15 lakh rupees in every person's account, Crowds of people gathered outside the bank

newstracklive.com

Feb 18, 2020 3:21 PM



Kochi: The Modi government at the Center is depositing Rs 15 lakh in each person's account. As soon as this news spread, there are long lines of people outside the banks. A few months ago in Kerala, such reports were also reported. Now once again this news has spread on social media, people have started queuing outside banks.

After the news spread, people stopped their school-office and daily work too. People left all their work and went to open accounts in banks. The poor people left their daily wages and were seen queuing up outside the banks. Actually, Munnar is the famous tourist destination of Kerala. Here on social media, messages started going viral that the Modi government at the centre is putting Rs 15 lakhs of its promises in every person's account.

People reached to open their account in front of the banks from the night itself. Some people even took the bed together. However, when people came to know that this news was also a rumor like previous news, they were very disappointed. The news spread like a fire on social media. It was told in fake news that only those whose accounts will be in the postal bank will get the benefit of this scheme.

 

Big Daddy

Super User
This is not so much about banks in India but how to avoid banks in India. The best way is this: Transfer Money Online | Send Money Abroad with TransferWise

You get a debit card with the account. You can keep money in 40 different currencies. There are no fees but no interest. You can withdraw up to $250 in any ATM within 30 days with no fees. You can charge this as a regular debit card for no fees and as long as you have a currency of the country you pay no fees but if you have foreign currency then it will automatically get converted into the local currency at the lowest rates. Also, people can pay you in foreign currency and it will sit into your bank account as foreign currency.
 

cat

Senior Billi
:lol: ........one day we must all get universal wage. For being alive.:lol:
Kochi: The Modi government at the Center is depositing Rs 15 lakh in each person's account. As soon as this news spread, there are long lines of people outside the banks.
 

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Customers will no longer get Rs 2,000 currency notes at Indian Bank ATMs

Gireesh Babu | | Last Updated at February 22 2020 01:55 IST


Customers would no longer get Rs 2,000 denomination notes at Indian Bank ATMs, with the lender advising its branches to immediately stop loading that currency at its ATMs and cash recyclers.The bank said the high-value notes were an inconvenience to customers who found it hard to exchange those in retail outlets and other places. According to a circular issued by the lender’s digital banking division on February 17, cash dispensation from Rs 2,000 currency cassettes would be disabled at all ATMs and cash recyclers on March 1, 2020. The branches, though, will continue to offer the currency notes, according to sources. "Customers are coming to branches to exchange the Rs 2,000 currency notes withdrawn from ATMs, with low-value denomination notes, which is defeating the very purpose of migrating the customers to alternative delivery channels," it said.



 

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Yes Bank's News is not good.
However there are some rays of hope for Yes Bank.



RBI supersedes board of Yes Bank, caps withdrawals at Rs 50,000The RBI has also superseded the Board of Directors of Yes Bank Ltd for a period of 30 days.
ET Bureau|
Last Updated: Mar 05, 2020, 10.10 PM IST
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Agencies
[Image: Untitled-6] Yes Bank has been struggling to raise USD 2 billion in equity for the last few months. Many proposals came up for discussions, but none fructified.
MUMBAI: The Reserve Bank of India superseded the Board of Directors of Yes Bank and imposed a moratorium for a month as its financials deteriorated, but has promised to come up with a credible restructuring plan in the next few days that may involve merging it with another lender.

The regulatory action follows extended period of inability of the bank management to come up with fund raising that would have helped it provide against loan losses. Prashant Kumar, former deputy managing director at State Bank of India, would be the administrator.

Depositors can pull out a maximum of Rs. 50,000 per head even if an individual has more number of accounts, a government gazette notification said. The outstanding amounts on drafts and pay orders issued so far would be paid in full, it said.

The central bank could breach the cap of withdrawal for exceptional events in a depositor’s life such as a medical emergency, payment for higher education or for marriages. This shall not exceed Rs. 5 lakh.

``In the absence of a credible revival plan, and in public interest and the interest of the bank’s depositors, it (the RBI) had no alternative but to apply to the Central Government for imposing a moratorium,’’ RBI said in a statement. ``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.’’

The moratorium is a shock to the financial system because there has been no big bank that was placed in such a situation since July 2004 when the regulator resorted to a shotgun marriage of Global Trust Bank with the state-run Oriental Bank of Commerce. Recently, the Punjab and Maharashtra Co-operative Bank also faced a similar fate. The central bank also blamed the governance standards at Yes Bank over the past few years.

``The financial position of Yes Bank Ltd. (the bank) has undergone a steady decline largely due to inability of the bank to raise capital to address potential loan losses and resultant downgrades, triggering invocation of bond covenants by investors, and withdrawal of deposits,’’ said the RBI. ``The bank has also experienced serious governance issues and practices in the recent years which have led to steady decline of the bank.’’

The central bank moratorium on Yes Bank would however permit it to repay loans or advances granted against Government securities or other securities, to the bank by the RBI or by any other bank and remaining unpaid as of Thursday. It would also be allowed to operate its account with the RBI.

Yes Bank which has seen its fortunes slide over the past 18 months has been in talks with many equity investors over the past year, but failed to come up with a concrete investment plan.

``The bank management had indicated to the Reserve Bank that it was in talks with various investors and they were likely to be successful,’’ said the RBI statement. ``The bank was also engaged with a few private equity firms for exploring opportunities to infuse capital. These investors did hold discussions with senior officials of the Reserve Bank but for various reasons eventually did not infuse any capital.’’

Last month Yes Bank had informed exchanges that the about half-a-dozen investors, including JC Flowers & Co, Tilden Park Capital Management, OHA (UK) (part of Oak Hill Advisors) and Silver Point Capital, have sent in ‘non-binding’ expressions of interest. Yes Bank has postponed its December quarter results citing fund raising talks and is set to announce earnings by March 14.

Yes Bank turned wobbly due to surging bad loans and management uncertainty when the Reserve Bank of India declined to extend the term of founder Rana Kapoor as the Chief Executive in 2018. Under the new CEO Ravneet Gill the bank managed to raise one round of funds through share sale to institutional investors, but that was not enough.

The central bank defended its delay in this act saying its preferred option is a market related solution.

``Since a bank and market led revival is a preferred option over a regulatory restructuring, the Reserve Bank made all efforts to facilitate such a process and gave adequate opportunity to the bank’s management to draw up a credible revival plan, which did not materialise,’’ the RBI said. ``In the meantime, the bank was facing regular outflow of liquidity.’’




Here's the full notification

Yes Bank Ltd. placed under Moratorium


The financial position of Yes Bank Ltd. (the bank) has undergone a steady decline largely due to inability of the bank to raise capital to address potential loan losses and resultant downgrades, triggering invocation of bond covenants by investors, and withdrawal of deposits. The bank has also experienced serious governance issues and practices in the recent years which have led to steady decline of the bank. The Reserve Bank has been in constant engagement with the bank’s management to find ways to strengthen its balance sheet and liquidity. The bank management had indicated to the Reserve Bank that it was in talks with various investors and they were likely to be successful. The bank was also engaged with a few private equity firms for exploring opportunities to infuse capital as per the filing in stock exchange dated February 12, 2020. These investors did hold discussions with senior officials of the Reserve Bank but for various reasons eventually did not infuse any capital. Since a bank and market led revival is a preferred option over a regulatory restructuring, the Reserve Bank made all efforts to facilitate such a process and gave adequate opportunity to the bank’s management to draw up a credible revival plan, which did not materialise. In the meantime, the bank was facing regular outflow of liquidity.

After taking into considering these developments, the Reserve Bank came to the conclusion that in the absence of a credible revival plan, and in public interest and the interest of the bank’s depositors, it had no alternative but to apply to the Central Government for imposing a moratorium under section 45 of the Banking Regulation Act, 1949. Accordingly, the Central Government has imposed moratorium effective from today.

The Reserve Bank assures the depositors of the bank that their interest will be fully protected and there is no need to panic. 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.
The Reserve Bank

RBI supersedes board of Yes Bank, caps withdrawals at Rs 50,000
 
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Yes Bank: Govt caps deposit withdrawal at Rs 50,000
The bank will not be allowed to pay depositors a sum exceeding Rs.50,000 in any savings, current or any other deposit account, the government said in a notification.

Moneycontrol News@moneycontrolcom



Representative image
Representative image

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The Central Government has imposed a moratorium on Yes Bank effective today, restricting the withdrawal of deposits to Rs 50,000. Any withdrawal over the amount will require the permission of the Reserve Bank of India.
The moratorium will be applicable from 6:00 pm on March 5 to April 3, 2020.
The bank will not be allowed to pay depositors a sum exceeding Rs.50,000/- lying in any savings, current or any other deposit account, the government said in a notification.

Also Read: RBI supersedes Yes Bank board with immediate effect



RELATED NEWS

The restrictions in the withdrawal of deposits will be subject to certain conditions. RBI may, by a general or special order, permit the bank to allow withdrawal of over Rs 50,000 in the following unforeseen circumstances:
- in connection with the medical treatment of the depositor or any person actually dependent on him;
- towards the cost of higher education of the depositor or any person actually dependent on him for education in India or outside India;
- to pay obligatory expenses in connection with marriage or other ceremonies of the depositor or his children or of any other person actually dependent upon him;
- in connection with any other unavoidable emergency.

Also Read: JP Morgan cuts Yes Bank target to Re 1 after stake sale report

In a press release, the RBI said, the financial position of Yes Bank has undergone a steady decline largely due to inability of the bank to raise capital to address potential loan losses and resultant downgrades, triggering invocation of bond covenants by investors, and withdrawal of deposits. The bank has also experienced serious governance issues and practices in recent years, which have led to a steady decline of the bank.

RBI said it has been constantly engaging with the bank’s management to find ways to strengthen its balance sheet and liquidity and the management had indicated that various investors had been approached and were likely to come on board.

Also Read: Govt may nudge LIC to play white knight to rescue Yes Bank

However, in the absence of a credible revival, the central bank said, it has come to the conclusion that, in the interest of the bank’s depositors, it had no alternative but to apply to the Central Government for imposing a moratorium under section 45 of the Banking Regulation Act, 1949.
Accordingly, the Central Government has imposed moratorium effective from today, restricting the withdrawal of deposits to Rs 50,000, RBI said in the release.



Yes Bank: Govt caps deposit withdrawal at Rs 50,000
 

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RBI supersedes YES Bank board with immediate effect
Former State Bank of India CFO Prashant Kumar has been appointed the administrator.

Moneycontrol News@moneycontrolcom





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The Reserve Bank of India (RBI) on March 5 said it is superseding the board of troubled private sector lender YES Bank with immediate effect.
Former State Bank of India CFO Prashant Kumar has been appointed the administrator.
"This has been done to quickly restore depositors' confidence in the bank, including by putting in place a scheme for reconstruction or amalgamation," the RBI said in a statement.
The central bank has also imposed a moratorium on the private lender till April 3, 2020. Withdrawals from the bank have been capped at Rs 50,000 per depositor.
The move by RBI comes nearly six months after it did the same with Mumbai-based Punjab and Maharashtra Cooperative (PMC) Bank.
YES Bank has been grappling with mounting bad loans and has been struggling to raise fresh capital.


RBI supersedes YES Bank board with immediate effect



Also Read | YES Bank: Govt caps deposit withdrawal at Rs 50,000

Also Read: Govt may nudge LIC to play white knight along with SBI
 

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Yes Bank Crisis: Customers Rush to ATMs in Mumbai After RBI Caps Withdrawal Limit to Rs 50000

latestly.com

Mar 6, 2020 7:03 AM

[https://res]

Yes Bank Customer Nand Kumar. (Photo Credits: ANI)

Mumbai, March 6: After Reserve Bank of India (RBI) on Thursday imposed a month-long moratorium on Yes Bank citing "serious deterioration in its financial position", capping the withdrawal limit at Rs 50000, depositors here rushed to the ATMs for withdrawing the cash. However, the customers claimed that the bank had not given any prior information about it while many rued that the ATMs have run out of cash.

During the period of moratorium, the Yes Bank Limited shall not, without the permission in writing of the Reserve Bank of India, make, in the aggregate, payment to a depositor of a sum exceeding Rs. 50,000 lying to his credit, in any savings, current or any other deposit account. Nand Kumar, a Yes Bank customer told ANI that he wanted to withdraw cash but the "ATM ran out of cash" as many people have withdrawn their money. YES Bank Crisis: Frantic Customers Line Up Outside ATMs as RBI Caps Withdrawals at Rs 50,000 For a Month.

"Banks are considered trustworthy by a common man but from now onwards people will start loosing their trust. RBI takes such action whenever it wants. What is the crime of common men? Bank did not inform us anything," said Kumar.

"Bank staff and other members have always urged people to deposit more money. We used to receive some messages on the phones regarding the same but the Yes bank has conspired and mislead the people," he added.Another customer said that he is in a need of withdrawing cash over Rs 50,000 but is helpless as the RBI has capped the withdrawal limit.

"I have an account in Yes Bank. The withdrawal has been capped at Rs 50,000, this is wrong. We will be facing problem as Holi is around. The bank has also not informed us about anything. I have Rs 2 lakh in my account and I need around Rs 1-1.5 lakh. A similar kind of situation occurred with PMC recently. Our request from the government is that our money should be cleared and returned at earliest," he added.

RBI on Thursday said a "moratorium" has been imposed on Yes Bank stressing that the bank's financial capability has undergone a steady decline largely due to the inability of the bank to raise capital. "The financial position of Yes Bank Ltd. (the bank) has undergone a steady decline largely due to inability of the bank to raise capital to address potential loan losses and resultant downgrades, triggering invocation of bond covenants by investors, and withdrawal of deposits," RBI said in a statement on Thursday. YES Bank Crisis: Reserve Bank Caps Withdrawals at Rs 50,000, Appoints Former SBI Chief Financial Officer as Administrator.

"The bank has also experienced serious governance issues and practices in the recent years which have led to steady decline of the bank. The Reserve Bank has been in constant engagement with the bank's management to find ways to strengthen its balance sheet and liquidity," the statement read.

(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)


 
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'Not able to withdrawal a single penny' - Yes Bank crisis sparks fear, account holders rush to ATMs as net banking collapses

indiatimes.com

Mar 6, 2020 9:45 AM

[https://res]

While the anger and frustration of account holders over the Punjab and Maharashtra Co-operative (PMC) Bank scam is yet to settle, RBI's moratorium on Yes Bank

has now sparked a fresh crisis among customers over the safety of their hard-earned money.

On Thursday, in a rare move, capital-starved Yes Bank was placed under a moratorium, with the RBI capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board.

Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.

Panic and fear have gripped the bank's customers across the country with the sudden move, as they fear a similar fate as that of PMC bank depositors.

Several depositors rushed to

ATMs

for withdrawing cash only to find that the ATMS had run out of cash.

"I wanted to withdraw cash but the 'ATM ran out of cash' as many people have withdrawn their money," a Yes Bank customer told ANI.

"PMC Bank (affected) 64 lakh families who may soon go on an indefinite fast due to lack of response from the govt. At least 7 people had died. #YesBank will be a bigger tragedy. Expect the usual buffoonery, chaos & indifference," said a Twitter user.

Another Twitter user Amit Gupta said that there's a long queue at ATMs across Delhi NCR regions; after panic gripped account holders due to misinformation spread in social media.

"Bank personnel are making it more complicated by not sharing proper information," he alleged.

Sever users also took to Twitter to complain about the site not allowing them to transfer money to another account.

"Not able to withdrawal a single penny from the Yes Bank account, RBI sets 50,000 and now its 0"


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[https://pbs]

FANI BHUSHAN GOEL[http://abs][http://abs]@fani_goel

#yesbankcrisis Even 50k transfer not working..

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30

7:19 AM - Mar 6, 2020

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Vikas [email protected]

· 1h

RBI sets 50000 withdrawal LIMIT IN yes bank.
If people keep money in their bank account, then why people can't withdraw their [email protected] @Yesbank people should not forced to set a limit on their own hard money#yesbankcrisis #yesbank #crisis #Bancrisis

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Vikas [email protected]

Not able to withdrawal a single penny from the yesbank account, RBI sets 50,000 and now its 0#RBI #yesbank #yesbankcrisis #banknifty #Bankcrisis
No upi, no net banking no card so how to withdraw [email protected] @Yesbank what should people do now, it's our money

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9:17 AM - Mar 6, 2020

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