Hot Deal Is money in yesbank not safe?

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Yes bank is in loss. What about our money if it got shut down?

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RBI has never allowed any scheduled commercial bank to fail in India since independence(cooperative banks like PMC are not scheduled commercial banks). Closest a scheduled commercial bank came to failing in India was Global Trust Bank in 2004 but RBI merged it with Oriental Bank so depositors did not lose any money though shareholders of global trust bank got nothing(aka no shares of oriental bank in exchange). Yes Bank is much bigger than Global Trust bank so RBI is definitely keeping a sharp eye on it.

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One of my friend’s company CEO has closed all his FD in yes bank last month, he had to fight his way and use Gormint contacts to get his money out of the bank
Total amount was 10 cr+
so you get the message

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I have significant amount in yes bank FDs and maturity date is far ahead….in dilemma ..what to do ? services of yes bank are quite good…

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Amounts upto 1 Lac per individual will get covered under DICGC and you can expect recovery of that only. Any amount above and over it please consider it at risk.

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guest_999 wrote:

RBI has never allowed any scheduled commercial bank to fail in India since independence(cooperative banks like PMC are not scheduled commercial banks). Closest a scheduled commercial bank came to failing in India was Global Trust Bank in 2004 but RBI merged it with Oriental Bank so depositors did not lose any money though shareholders of global trust bank got nothing(aka no shares of oriental bank in exchange). Yes Bank is much bigger than Global Trust bank so RBI is definitely keeping a sharp eye on it.

There is a first for everything. Btw PMC is a scheduled bank it received the status in 2000 (as per their website), it is not a commercial bank though as it comes under cooperative category.

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igen wrote:

There is a first for everything. Btw PMC is a scheduled bank it received the status in 2000 (as per their website), it is not a commercial bank though as it comes under cooperative category.

Indeed there is a first for everything,Indian economy may crash & burn before Yes bank possible closure & reach the similar situation as in 1991 where it had to pledge its entire gold reserve to get an IMF loan & agree to economic reforms in which case your money will be at risk irrespective of bank/place.

Tha’s why I said PMC was not a scheduled commercial bank because all scheduled commercial banks are much more strictly monitored & regulated by RBI compared to scheduled cooperative banks where even account books are not checked sincerely until some whistle-blower leak some news(like what happened in PMC bank).

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anshu wrote:

I have significant amount in yes bank FDs and maturity date is far ahead….in dilemma ..what to do ? services of yes bank are quite good…

See my posts,nothing much to worry.In worst case scenario RBI will merge Yes Bank with some big public/pvt bank & your deposits will remain safe with only loss being to yes bank shareholders.

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If its not co-operative bank.. Its safe bro… Otherwise for safety don’t keep more than lakh in single account

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karanoshan wrote:

One of my friend’s company CEO has closed all his FD in yes bank last month, he had to fight his way and use Gormint contacts to get his money out of the bank
Total amount was 10 cr+
so you get the message

10cr+ is not a small amount & that too in FDs. Forget Yes bank,even a bank in regular condition won’t let go of this amount easily without enough justification.FDs are treated separately from normal savings account in a bank’s account books & premature withdrawal of FD is something like a loss for bank’s potential/future earnings.

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guest_999 wrote:

Indeed there is a first for everything,Indian economy may crash & burn before Yes bank possible closure & reach the similar situation as in 1991 where it had to pledge its entire gold reserve to get an IMF loan & agree to economic reforms in which case your money will be at risk irrespective of bank/place.

Tha’s why I said PMC was not a scheduled commercial bank because all scheduled commercial banks are much more strictly monitored & regulated by RBI compared to scheduled cooperative banks where even account books are not checked sincerely until some whistle-blower leak some news(like what happened in PMC bank).

You sir are too optimistic about yes bank’s condition, or are too pessimistic about condition of indian economy.

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igen wrote:

You sir are too optimistic about yes bank’s condition, or are too pessimistic about condition of indian economy.

I am hedging my bets laughing Anyway I am not worried about Yes bank depositors losing money because it is the last thing Indian economy needs & RBI/finance ministry knows it too well.

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guest_999 wrote:

I am hedging my bets laughing Anyway I am not worried about Yes bank depositors losing money because it is the last thing Indian economy needs & RBI/finance ministry knows it too well.

But do you trust those guys in those ministries?
RBI has an IAS officer as their leading man.
sunglasses

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F7-Dimer-Primer wrote:

But do you trust those guys in those ministries?
RBI has an IAS officer as their leading man.
sunglasses

A senior IAS officer is jack of all trades(see some UPSC mains papers,it is not without reason to be considered as the toughest exam in India). He may not win any academic prizes but his common sense & general knowledge is much more than required.If it seems that they are not doing some things then it is not because of their ignorance but because of their reasons(political or personal).

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panchabhut wrote:

and an Arts Graduate in that.

People think Manmohan Singh as the architect of Indian economic reforms of 1991 but it was P V Narasimha Rao(the man was 10 times better politician than any gandhi family member born after Indira Gandhi in 1917) who made it possible despite not even having a majority govt. A specialist indeed knows better but a generalist is needed to apply specialist’s knowledge on a large scale.

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guest_999 wrote:

People think Manmohan Singh as the architect of Indian economic reforms of 1991 but it was P V Narasimha Rao(the man was 10 times better politician than any gandhi family member born after Indira Gandhi in 1917) who made it possible despite not even having a majority govt. A specialist indeed knows better but a generalist is needed to apply specialist’s knowledge on a large scale.

PVNR was fluent with 27 languages. Do you think that is possible for any ordinary human. He was also a person with exceptional IQ. Yes, he brought a technocrat and economist as the Finance Minister and then gave him free hand. But the policies were of Manmohan Singh only.

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Luckily, I never had bank account in Yes Bank but if it was my money, I would transfer it to other banks ASAP.

Will you remain on a sinking ship if you saw the captain of the ship abandoning it?

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guest_999 wrote:

RBI has never allowed any scheduled commercial bank to fail in India since independence(cooperative banks like PMC are not scheduled commercial banks). Closest a scheduled commercial bank came to failing in India was Global Trust Bank in 2004 but RBI merged it with Oriental Bank so depositors did not lose any money though shareholders of global trust bank got nothing(aka no shares of oriental bank in exchange). Yes Bank is much bigger than Global Trust bank so RBI is definitely keeping a sharp eye on it.

this is new India

you can’t be sure

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panchabhut wrote:

PVNR was fluent with 27 languages. Do you think that is possible for any ordinary human. He was also a person with exceptional IQ. Yes, he brought a technocrat and economist as the Finance Minister and then gave him free hand. But the policies were of Manmohan Singh only.

My point was that no matter how great an economist Manmohan singh was,it was of no use if PVN Rao was not understanding & supporting enough. Current RBI guv may not be an economist but he has enough knowledge & experience(see his career path) to understand the cost of letting Yes bank sink & there is a supporting govt behind him too.

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What about credit cards? If bank goes down, pending bill gone? stuck_out_tongue sunglasses

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guest_999 wrote:

My point was that no matter how great an economist Manmohan singh was,it was of no use if PVN Rao was not understanding & supporting enough. Current RBI guv may not be an economist but he has enough knowledge & experience(see his career path) to understand the cost of letting Yes bank sink & there is a supporting govt behind him too.

An IAS learns only one thing in his entire life. To take orders from his political bosses. Very rarely you find someone like Khemka.

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Majestic wrote:

What about credit cards? If bank goes down, pending bill gone? stuck_out_tongue sunglasses

You wish! laughing

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anshu wrote:

I have significant amount in yes bank FDs and maturity date is far ahead….in dilemma ..what to do ? services of yes bank are quite good…

Move to other Bank, I did it in Oct’19.
Even though Rs1lac is insured by RBI, or as others suggest RBI may merge YesB with other bank.. practically it would not be easy to get back that money, individual will undergo immense pressure, basically we are on our own – pretty clear from PMC and Co-Op Bank of Bangalore sagas .
We are lucky to know the rot early so why take risk.
U may consider moving to IDFC First or Equitas

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anshu wrote:

I have significant amount in yes bank FDs and maturity date is far ahead….in dilemma ..what to do ? services of yes bank are quite good…

And @AtulAggarwal chances are very bleak that rbi will let yes bank fall. Rbi governor recently said that he will not let any fi fell. And moreover amount till 1l is covered via deposit insurance.
But it is always safe to hedge urself, keeping above things in mind.

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