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Yes, bank users can now make payments of more than Rs 2 lakh for loans, credit cards through other bank a / cs

NEW DELHI: Yes, Bank said Wednesday that its internal real-time gross settlement services (RTGS) have been enabled to allow customers to make payments on their credit cards and loan obligations from other bank accounts.

The announcement comes a day after its clients were allowed in-house services by IMPS (Immediate Mobile Payment Service) and NEFT (National Electronic Funds Transfer) for the same purposes.

Yes, the bank says that customers can now pay by credit card, loan payments from other accounts

Yes, Bank customers can now make credit card payments and loans from other bank accounts using Immediate Mobile Payment Service (IMPS) or National Electronic Funds Transfer (NEFT) services, said the troubled private lender. Last week, the Reserve Bank of India (RBI) took over Yes Bank amid scandals in the country’s financial sector in recent years.

RTGS is used for payments over Rs 2 lakh, while payments below this amount can be made using NEFT. In addition, repayments of loans and credit cards to the bank can also be made through IMPS from other bank accounts.

“Internal RTGS services have been enabled. You can make payments for YES BANK credit card fees and loan obligations from other bank accounts,” the bank said in a tweet on Wednesday.

Yes Bank tweet 2 (1)

Meanwhile, in the ‘Moratorium-Related Frequently Asked Questions’ posted on its website, crisis-affected Yes Bank said services like online remittances, clearing checks and money orders, as well as the External EMI payment will continue to be restricted during the moratorium period.

However, if an employer has a checking account at Yes Bank and wants to pay wages to employees, there will be no problem doing so.

According to frequently asked questions, Yes Bank said that outgoing online remittances, including RTGS and NEFT, are still suspended. “All clearing activities are suspended as of now.”

“Your EMI (Equivalent Monthly Fees) will be met up to the prescribed limit, subject to reinstatement of compensation activities,” he said.

On March 5, the Reserve Bank of India (RBI), in consultation with the government, suspended Yes Bank until April 3, citing serious financial mismanagement by the private sector lender. During the period, clients cannot withdraw more than Rs 50,000.

The bank on Tuesday allowed internal IMPS and NEFT services to allow its clients to make payments on EMI loans and Yes Bank credit card loans through other bank accounts. The move came after its clients complained that they were unable to make payments on their Yes Bank credit and loan repayments and were eager to be fined because of them.

Without cash, Yes Bank customers risk ruining their credit score

The risk of default on payment obligations hangs over Yes Bank account holders, as they can withdraw only Rs 50,000 of their savings until the moratorium is lifted. Many PMC Bank clients saw their credit scores deteriorate as lack of access to funds damaged their record.

Furthermore, within the Rs 50,000 limit, the Mumbai-based lender has also allowed its clients to withdraw money from its own ATMs and from other banks.

In frequently asked questions, in a query about what will happen if someone has written and written checks to customers, Yes Bank replied, “All clearing activities are suspended as of now under the policy. Your already written checks will not be accepted until that compensation activities are restarted or additional regulatory directive. ”

In another query on what will happen if someone has already dropped a check at the Yes Bank counter, he said that since all clearing activities are suspended, “Yes Bank DD / checks will not show up on clearing until there are further instructions or until the reinstatement of cleaning activities. ”

However, in a query, what if an employer has a checking account at Yes Bank and needs to withdraw more than Rs 50,000 to pay wages to employees? The lender said it can be done.

“Yes Bank’s current account can be debited for more than Rs 50,000 for the payment of wages in accounts maintained only with Yes Bank,” he clarified.

In addition, he also said that the transfer from one Yes Bank account to another will be allowed without any restrictions.

“However, customers can withdraw a total sum of Rs 50,000 from all of these accounts in the moratorium period until April 3, 2020,” he added.

If you want to settle an independent fixed deposit at Yes Bank, branches are said to be able to settle independent fixed deposits (FD) for less than Rs 20,000 along with interest and pay cash according to the process.

“For FDs equal to or greater than Rs 20,000 (along with interest) but less Rs 50,000 (along with interest), branches can issue a draft claim (DD) to customers, however, DDs can be submitted for compensation only one once the clearing services are re-installed, “he said.

Since the bank was placed under the moratorium on March 5, a sense of panic has gripped customers across the country, who have been seen lining up at bank branches and ATMs to withdraw money.

Yes, Bank said its ATMs are functional and that customers can withdraw money from there.

Services like Yes Bank-backed digital payments also faced disruptions in the early stages, which have now been restored. Among others, prepaid food services and forex cards are also affected due to the sudden supervision of the private sector lender.

Small lenders who cleared checks through stagnant Yes Bank

Yes, the Bank’s disconnection from various payments and fund transfer networks is affecting more than 50 small banks, including rural cooperative, foreign and regional banks. With the suspension of Yes Bank’s moratorium on real-time gross settlement and check clearing (RTGS) systems, other banks that rely on the troubled private lender are also excluded.

During the moratorium period, Yes Bank may not grant or renew any loan or advance, make any investment, incur any liability, or agree to disburse any payment.

The RBI has launched a rebuilding scheme project for the private sector lender under which the State Bank of India will obtain a 49 percent stake in the Yes Bank in crisis under a government-approved bailout plan by infusing capital Rs 2,450 million.

On Monday, Yes Bank’s RBI-appointed administrator Prashant Kumar expected the bank moratorium to be lifted this weekend.

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