Yes Bank is weighed down by an increasing pile of bad debt
Crisis-hit private sector lender Yes Bank said on Tuesday that customers can now make certain payments through its instant money transfer services National Electronic Funds Transfer (NEFT) and Immediate Payment Service (IMPS).
In a post on Twitter in morning, Yes Bank said its customer can pay "their credit card dues" and "loans from other bank accounts" using IMPS and NEFT.
The development comes as the Reserve Bank of India (RBI) superseded Yes Bank's board and took control of the private sector lender last week, and also capped withdrawals from its accounts, with few exceptions, spooking investors.
The government has prodded State Bank of India - the country's largest bank by assets - to step into the breach and lead the planned rescue of Yes Bank.Currently, the RBI has capped Yes Bank withdrawals at Rs 50,000 till April 3 and imposed limits on withdrawals to protect depositors.SBI chairman Rajnish Kumar told TheIndianSubcontinent on Monday that the current cap on withdrawals from Yes Bank accounts could be lifted "within a week".
"I want to assure Yes Bank customers that once we (SBI) step in they shouldn't worry about money The financial system is sound," he said. SBI has agreed to immediately invest Rs 2,450 crore to buy a 49 per cent stake in Yes Bank as part of the RBI-backed rescue deal for the troubled private sector lender. Yes Bank, weighed down by an increasing pile of bad debt, had struggled for months to raise the capital it needs to stay above regulatory requirements, without any success.
Business
Customers Can Now Use IMPS, NEFT To Pay Dues, Says Yes Bank
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