YES Bank customers' fund withdrawal requests cancelled by brokerage firm, Zerodha

The Reserve Bank of India (RBI) capping depositor withdrawals at Rs 50,000 per account for a month has several implications in operations for the private lender’s customers, according to a report. Brokerages like Zerodha have cancelled requests linked to the Yes Bank accounts and are seeking a change to other bank accounts so that funds are not blocked, according to an IANS report.

We have cancelled all fund withdrawal requests made by clients to their YES bank accounts so that the money doesn’t get blocked. Please change, if your primary bank account is YES, to any other and withdraw the funds.   https://t.co/p85cBc1SeZ

— Nithin Kamath (@Nithin0dha) March 5, 2020

“We have cancelled all fund withdrawal requests made by clients to their YES bank accounts so that the money doesn’t get blocked. Please change, if your primary bank account is YES, to any other and withdraw the funds,” a tweet by Nithin Kamath, Founder and CEO, said to IANS. [caption id=“attachment_5595711” align=“alignleft” width=“380”]  Representational image. Reuters.[/caption] Zerodha has given the procedure for changing the primary bank account linked with the brokerage. “To change your primary bank account, you are required to provide us with a signed ‘‘Account Modification Form along with a proof of the new Bank Account you want to link. Please note that Rs 25+ 18 per cent GST will be charged for the modification,” as per Zerodha. The accepted bank proof is any one of the documents like personalized Cancelled cheque (name printed on the cheque leaf), bank statement (with IFSC Code and MICR No.) (self-attested copy), bank passbook statement (self-attested copy). The RBI superseded the board of Yes Bank, which has not been able to raise required capital for the last six months. It also appointed former Chief Financial Officer of SBI, Prashant Kumar as the administrator of Yes Bank. “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,” the RBI said in a statement late in the evening.