With the stoppage of clearing operations of Yes Bank, 109 of urban cooperative banks who had CTS arrangement with the bank got adversely affected. The apex body of urban co-op banks NAFCUB took up the matter on an urgent basis with the RBI.
Talking to Indian Cooperative NAFCUB President Jyotindra Mehta said, “The Banks which were sub members for clearing system under Yes Bank are requested kindly to take quick action to change to another Bank.”
Mehta’s words were followed by Nafcub secretariat, which sent out a detailed letter to all the affected UCBs. The letter read, “ The matter was taken up with RBI on an urgent basis and they have provided us with instant solutions which may be followed by all affected urban cooperative banks.”
“YES Bank has since given NOC to all the banks to open CTS accounts with any other commercial bank of their choice”, the letter read. A copy of the same has also been circulated by the NAFCUB to its entire fraternity comprising of hundreds of UCBs.
“An approval from the bank which will make UCB’s clearing arrangement under CTS is to be obtained through filling up a form and uploading the same to the respective Regional Offices of the RBI under which the urban cooperative bank operates”, Nafcub clarifies to its members on how to go about completing the process.
“Please get this done immediately so that there is no further disruption of operations in your bank”, writes Nafcub to its affected members, underlining that NAFCUB is always at their service.
Nafcub also follows this with a letter to National Payments Corporation of India, informing it that UCBs have decided to participate in Mumbai clearing as indirect member.
“We confirm that the necessary legal agreement formalities have been completed for this arrangement”, claims Nafcub in its letter to NPCI.
“Please arrange to make necessary modifications in CH to map us as indirect member and confirm”, the letter demands.
