Customers Of Yes Bank, Beware! There Has Been An Increase In The Fine For Premature Withdrawals From Fd; Check Out The New Rates Here.
On August 8, the Bank’s website indicates that there will be an increase in the penalty amount.
Customers Of Yes Bank, Beware! There Has Been An Increase In The Fine For Premature Withdrawals From Fd; Check Out The New Rates Here
The Yes Bank fixed deposit policy has been amended to increase the penalties for premature withdrawals of fixed deposits made by Yes Bank customers, the lender has stated on its website.
Yes, Bank has announced on its website that the new higher penalty amount will come into effect as of August 8 this year.
In recent days, Yes Bank has announced the changes on its website and specified the new rates of penalty that will be charged for premature withdrawals from yes bank fixed deposits.
For premature withdrawals from Yes Bank FDs, the following penalty charges apply
Currently, Yes Bank is charging a 0.50 percent penalty to investors who have tenures less than or equal to 181 days, an increase from the earlier 0.25 percent penalty.
In the case of premature withdrawal of FDs for tenures of 182 days and above, Yes Bank will charge a penalty of 0.75 percent, up from the previous 0.50 percent, for premature withdrawals.
It is important to note that these rates are not applicable to senior citizens since Yes Bank does not charge a penalty for senior citizen FD withdrawals at this time as the bank does not charge a penalty for senior citizen FD withdrawals at this time.
Premature FD withdrawals from Yes Bank: Things to remember.
- Yes Bank has stated on its website that if a customer prematurely withdraws their deposit within seven days of the deposit date, no interest will be paid on the deposit and that the customer will not be refunded the interest paid on the deposit. Additionally, the bank does not pay any interest on the NRE Deposit in the event that it is closed before the expiry of the 12-month tenure. In such cases, No Bank said on its website that there are also no charges associated with premature closure.
- Each individual and non-individual customer who opens a fixed deposit with Yes Bank will be subject to a premature penalty at the abovementioned rates.
- The above-mentioned rates will also apply to senior citizens’ fixed deposit bookings or renewals between July 5, 2019, and May 15, 2019. For fixed deposits booked or renewed by senior citizens after May 16 this year, the Bank will not charge a premature penalty.
- For the period July 5, 2019 – May 9, 2021, Yes Bank employees who booked or renewed FDs must pay the premature withdrawal penalty. In contrast, employees of the bank are not subject to premature penalties for FDs booked or renewed on and after 10th May 21.
- According to Yes Bank’s website, both partial and full withdrawals of FDs will be subject to a penalty interest charge. In the case of FCNR and RFC deposits, there is no penalty for premature withdrawal. In all tenures and value buckets over Rs 5 crore, the existing penalty structure shall be 0.25 percent.
- FD premature closure requests can be submitted the next business day following the booking of an FD at Yes Bank.
More News Yas Bank
A Rs 350 crore investment will be made by Yes Bank in JC Flowers in FY23; $1 billion will be raised as core capital in FY24
Prashant Kumar, Es Bank’s managing director, and chief executive said the bank plans to raise up to $1 billion in FY23 in order to boost its core capital base once the NPA issue has been resolved.
JC Flowers has come forward as the preferred bidder for a sizeable chunk of the lender’s bad loans, which are worth Rs 48,000 crore after the bank invested up to Rs 350 crore to take a 20 percent stake in the asset reconstruction company. Prashant Kumar, managing director, and chief executive officer of the private sector lender, told reporters here on Monday that the bank plans to raise as much as $1 billion in FY23 to bolster its core capital base once the NPA challenge has been resolved.
Currently, the bank’s core equity ratio stands at about 11,5 percent, but after the capital raise, it is expected to reach more than 14 percent, he stated, adding that even though market conditions are not conducive at the moment, the bank still hopes to conclude the process in FY23.
According to Kumar, the transfer of over Rs 48,000 crore of gross non-performing assets – which are legacy corporate loans that have gone bad due to bad management or bad loans that have become non-performing assets – to the asset reconstruction company (ARC) will take care of the biggest challenge the bank is facing as it will reduce the NPAs from 14 percent to under 2 percent.
The bank has also already begun a Swiss challenge process so that the highest bidder for the stock of NPAs will be invited to place a bid, and JC Flowers will be permitted to match the bid if the highest bidder submits a better offer.
He told reporters during his interview that the ownership issues at JC Flowers have been “resolved” to Yes Bank’s satisfaction, while the entire process of finding the best bidder under the Swiss challenge, as well as the transfer of assets to the ARC, is expected to take about 75 days, he added.