Yes Bank crisis: Cheque, CTS clearings of 9 banks take a hit

Aurangabad: Transactions, in terms of

cheque

and CTS (cheque truncation system) clearances of at least

nine banks

, have taken a hit since the Yes Bank scam surfaced last week.

Some banks in Aurangabad have already issued an internal communication to their employees, asking them to not accept cheque or CTS clearance for these cooperative banks. A copy of one such internal communication — asking the bank employees to abstain from accepting cheques as well as CTS of Yes Bank and nine other cooperative banks, including Aurangabad District Central Cooperative (ADCC) Bank — is with TOI.

At some of the banks, the notice has already been put up at the counters for customers to see.

A banker said the communication was issued after the RBI, on Thursday, imposed a withdrawal limit of Rs 50, 000 on Yes Bank customers. Insiders said all these nine cooperative banks did their transaction through the Yes Bank.

While most of these affected banks refused to comment, Abhijit Deshmukh, one of the ADCC directors, told TOI: “Due to the Yes Bank

crisis

, we are facing an issue in getting our cheques and CTS cleared.” He said the ADCC is open to considering alternative options.

When contacted, All Indian Bank Employees’ Association (AIBEA) joint secretary Devidas Tuljapurkar said, “The government asking SBI to bail out Yes Bank is aimed at diffusing the situation. The government had done the same thing when IL&FS had collapsed. SBI and LIC, two public sector institutions, were made to rescue it. It doesn’t stop here. Some more private sector banks are in the queue.”

Citing that the government, in the previous budget, had claimed that “public sector banks (PSBs) are inefficient” and the government is asking the same PSBs to bail out private sector banks, Tuljapurkar said that it is not only astonishing but also scary. “The government is merging PSBs with legacy of more than a century, and at the same time, is bailing out a private sector bank with hardly two decades standing. This is more than serious,” said Tuljapurkar.


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