ANGRY & CONFUSED, PEOPLE QUEUE UP OUTSIDE BRANCHES
Brijesh Upadhayay and his team in Gurugram have been up since 6 am, frantically texting their superiors to find out the fate of their salary accounts. Upadhayay’s employer, a large consultancy firm, has salary accounts with the ill-fated YES Bank for all employees across the country.
“We’ve been assured that company will prepare alternative measures soon. For now, my money is stuck. What is more troublesome is that the net banking service is down and several branches might be shut during the long weekend of Holi,” he said.
Alternatives sought
Some tech employees said their employers told them to give the details of an alternative account where their salary would be transferred. In the meantime, competition banks have started making hay. “Outreach tents of ICICI Bank, Kotak Bank and other private lenders were stationed at large corporate buildings, targeting employees especially of firms with salary accounts in YES
Bank,” said a Noida-based techie.
At the Non Resident Indian (NRI) branch in Chanakyapuri, bank executives were seen comforting their ‘high net worth’ customers by promising ~50,000 by Monday, without fail. “Kisi ko bhi bhej do sir, main aapka paise aapke ghar bhijwa dunga (Send anyone to the branch and I will send money to your house),” said an executive at the Diplomatic Enclave branch.
The bank had been a favourite of such individuals — NRIS, corporate executives and Indian nationals earning in foreign currency — pulled in by the low interest rates. “A 6 per cent annual interest rate and Amazon gift card on opening NRE/NRO savings account,” claimed a board outside.
But on Friday, none of that mattered for Smita, whose salary has been stuck. An employee at the embassy of a European nation, Smita and other embassy executives lined up outside the branch. They were joined by several expats, there to close their account and withdraw all funds.
Across branches, the busiest people were the relationship managers. Many were seen advising clients the situation was only temporary and that their money was safe. “In the case of ownership changing hands, the new owners will put the customers first,” one employee said.
Cash crunch
Several security guards restricted the people from talking to the media under order from the branch manager. “My fixed deposit is stuck. How will I take out so many lakhs in tranches of ~50,000?” asked a 60-year-old resident of Diplomatic Enclave, one of the poshest localities of Delhi.
A worker, refusing to share his profession and name, said: “Both mine and my wife’s account is here since we both work nearby. When our son joined college, I opened his account here as well. All of us are worried,”
Across east Delhi, shop and restaurant owners were enquiring if the bank would survive at all. Many complained about not being able to access internet banking. “You are adding to the chaos. Limit the transfer online. Why would you want hundreds of people lining up at the branch,” said a 35-year old at the Mayur Vihar branch.
Cash disbursement has been controlled across branches. But customers are more irked by online payments getting stuck and ATMS running dry. “Most people don’t even what happened, and are being told it’s a server crash,” said Sunaina Sharma, a marketing professional.
Urgent need
People with urgent needs have been hit the hardest. Ravi Kumar, 38, who has a salary account at the Daryaganj branch, is desperate. With his wife currently admitted to the G B Pant hospital, he hasn’t been keeping up with the latest news. On Friday morning, he rushed to the branch, hoping to secure cash on an urgent basis, but was told no cash could be withdrawn.
“They initially led me to believe that no transactions could be carried out. It’s only after I confronted them about my legal right to withdraw ~50,000, that they backed down,” Kumar said, visibly angry. However, they now want to see the receipt from the hospital before allowing any transaction, he added as he rushed back to the hospital, negotiating Daryaganj’s dangerous traffic.
Asked about the situation, the Branch Service Leader (Manager) said journalists were not allowed on the premises and no comments would be shared in the immediate future.
Staff at the bank’s Karol Bagh branch said rumours of a disaster had been circulating on office Whatsapp groups for some time now. But “we have no clue what the future holds, since higher-ups have refused to share any details”, said an employee.
Public vs private banks
The RBI action may have sharpened the inherent divide between public and private sector banks at a time when the public’s trust in the banking system has taken several hard knocks. The Centre’s hope of prodding more private banks into noncorporate banking may also suffer.
Auto driver Rajen, a long-time customer of a government bank, claims he was enticed multiple times to take out a loan from YES Bank but firmly held out. “People get attracted to the shiny offices and glass walls. But only government thinks of poor people,” he said.
While some branches saw usual to low footfall on Friday, long queues were seen at the Janpath branch, located in a busy office district in the heart of the city. While chaos reigned inside, two constables from the local police station were seen making the rounds, keeping incredulous depositors at bay.
Jeet and Barkha, a young couple who have six accounts between the two of them, said they had initially planned to withdraw money from each. But bank staff rebuffed the request. “Most of my working capital is stuck and there is no provision for high-value customers as well. This is not the ease of doing business we are bombarded with everyday,” said business owner Jeet, pointing to a large government hoarding on the main road announcing easier financial transactions.
Staff at a branch said there have been rumours on Whatsapp for some time. But “we have no clue what the future holds since the higher-ups have refused to share any details”.