You may have read about the recent series of instructions and directives in relation to Yes Bank in the news and the salient points are as below:
- Yes Bank has been placed under Moratorium for a period of 30 days (Till April 4, 2020)
- RBI has placed restrictions on the amount that can be withdrawn from Yes Bank
- RBI has superseded the Board of Directors of Yes Bank and has appointed an administrator
- The financial position of the bank had deteriorated quite significantly and the bank was unable to raise capital
- The Reserve Bank assures the depositors of the bank that their interest will be fully protected and there is no need to panic
RBI press releases
Our Research team has looked at the total exposure of the Mutual Fund Industry (open ended schemes only – No FMPs) and broken this down at an asset class level and category level. You can find the excel here.
As a mutual fund investor with investment accounts linked to Yes Bank, you may have some questions:
What happens if you place withdrawals?
To avoid customer money getting blocked ICICI, SBI, Nippon, Edelweiss, Kotak mutual fund companies are holding onto payment of the redemption orders of Yes Bank account holders. So the customer will get the NAV of the day on order placement but the payment will not be credited.
What happens to your scheduled investments?
None of your scheduled investments (SIPs) from Yes Bank account will go through.
How do I invest through Net banking/ UPI using YES bank account?
You will not be able to invest through Net banking/ UPI using your Yes Bank account.
What should you do?
All Scripbox customers can reach out to us 1800-102-1265 or firstname.lastname@example.org to help change the bank account.
This information is based on the current updates we have received from mutual fund companies and payment providers. We will keep updating this blog as and when we get more information regarding this.