InvestorQ : What happens to investors who have trading accounts and mutual fund SIPs that are linked to Yes Bank accounts?
Debbie Mascarenhas made post

What happens to investors who have trading accounts and mutual fund SIPs that are linked to Yes Bank accounts?

Answer
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Crowny Pinto answered.
6 months ago


Most mutual funds and brokers are already taking proactive steps in this direction. For example, AMCs have already asked their clients with bank accounts in Yes Bank to furnish details of alternative accounts for receiving redemption payouts. This has been applied to equity and debt funds. It may be recollected that late on 05 March 2020, the RBI imposed a moratorium on Yes Bank and allowed the bank’s depositors to withdraw cash up to Rs.50,000 only. Kotak MF has gone a step ahead and said that any Yes Bank account requests to change the bank mandate would be processed in 24 hours to enable next day payment also and ensure that funds are not blocked. Discount broker, Zerodha, has gone ahead and cancelled all withdrawal requests made to Yes Bank so that the funds do not get blocked. Zerodha has also asked the trading clients to change their bank mandates with immediate effect so that their funds are not blocked.