When the Reserve Bank of India (RBI) imposed a moratorium on Yes Bank in March 2020, no customer funds were permanently lost—their deposits remained protected under the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5 lakh per depositor (WION News, India TV News). However, many customers did face temporary disruptions and inconveniences:
What Went Wrong During the Crisis
- Withdrawal Limits & Liquidity Crunch
Customers were restricted to withdrawing only ₹50,000 per month, which led to widespread queues, ATM failures, website outages, and immense stress—especially for those with immediate financial needs like weddings, tuition, or emergencies (Moneycontrol, ETBFSI.com). - Impact on Payments and EMIs
Fixed deposits, EMIs, insurance premiums, SIPs, and other auto-debited payments tied to Yes Bank accounts were often disrupted. Many customers had to urgently update account details across services such as utilities, loan providers, insurance firms, mutual funds, and online platforms like UPI apps (mint, India TV News). - Withdrawal Panic Exacerbated by Cash Siphoning
As word of the bank’s financial strain spread, depositors hurriedly withdrew about ₹18,000 crore between March and September 2019, fueling the liquidity squeeze (The Hindu, WION News).
In Summary
| Issue | Effect on Customers | Loss? |
|---|---|---|
| Moratorium & ₹50k withdrawal cap | Inconvenience, stress, delayed payments | No permanent financial loss |
| Disruption to EMIs, premiums, SIPs | Risk of missed payments or policy lapses | Temporary disruption |
| Required updates to payment profiles | Time-consuming but necessary to avoid future issues | No monetary loss |
| DICGC protection up to ₹5 lakh | Ensured customer deposits were secure | Funds remained safe |
Bottom Line: Although customers faced significant operational and emotional challenges during the Yes Bank crisis, there were no confirmed instances of actual financial losses. Thanks to regulatory protections and eventual recapitalization, depositors’ money was preserved—albeit temporarily less accessible.