Beware of Account Freezes at YES Bank – A Startup’s Troubling Experience
Beware of Account Freezes at YES Bank – A Startup’s Troubling Experience
As a startup company in the IT and Fintech sectors, we have been diligently building our presence across PAN India. Specializing in BBPS (Bharat Bill Payment System) and Recharge Software for the B2B segment, we have consistently ensured compliance with all legal and financial obligations, including timely GST payments. However, our recent experience with YES Bank has left us deeply concerned about the security of business funds and the transparency of banking practices.
The Incident: Unexpected Account Freeze
Until December 31, 2024, our current account at YES Bank functioned smoothly, enabling us to manage our operations effectively. On this date, however, our account was suddenly and inexplicably frozen due to a cyber complaint. What’s most concerning is that the complaint was not directly linked to our account. According to the bank, we were categorized under “Layer 5” of the complaint.
A deeper dive into the bank’s documents revealed that the complaint involved a transaction of ₹90,006, with the disputed amount being a mere ₹39.02. Shockingly, instead of placing a lien on the disputed amount or taking more measured steps, the bank decided to freeze our entire account. This disproportionate response has caused severe disruptions to our daily operations, putting unnecessary strain on our business growth and financial stability.
The Harassment Begins: A Cycle of Blame and No Resolution
Upon learning of the freeze, we immediately approached YES Bank to resolve the issue. However, instead of offering a clear solution, the bank directed us to the local cyber office. When we followed their advice, the cyber office in our location instructed us to contact the cyber authorities at the location where the complaint originated. This unnecessary redirection has resulted in undue harassment and has delayed the resolution of an issue that should have been addressed promptly by the bank itself.
Despite our repeated efforts to seek clarification and resolution from YES Bank via email and phone, we have received no adequate response. This lack of accountability from a reputed financial institution has not only disrupted our business operations but also raised serious questions about the reliability of YES Bank’s services for businesses.
The Bigger Picture: Risk for Businesses
This incident is not just about our startup—it highlights a broader risk faced by businesses relying on YES Bank for their financial operations. If a minor complaint involving a negligible disputed amount of ₹39.02 can lead to a total account freeze, it raises concerns about the bank’s protocols and commitment to supporting businesses.
Instead of assisting their clients, YES Bank chose to act in a way that severely impacted our ability to conduct business. The lack of transparency, arbitrary decision-making, and failure to provide swift resolutions reflect poorly on the bank’s operations and customer service.
Our Advice to Other Businesses
We strongly caution other businesses, especially startups and SMEs, against keeping their hard-earned money in YES Bank. Sudden account freezes over trivial disputes can lead to operational disruptions, financial losses, and undue stress. If such incidents can happen to us despite adhering to all legal and financial obligations, they can happen to anyone.
A Call for Fair Practices
This experience underscores the urgent need for fair and transparent banking practices. Banks must establish mechanisms that balance the resolution of complaints with the protection of their clients’ operations. Freezing an entire account for a minimal disputed amount not only reflects poor judgment but also jeopardizes the trust businesses place in their banking partners.
Conclusion
Our startup’s troubling experience with YES Bank serves as a warning to others. While we continue to seek a resolution, we urge businesses to exercise caution when selecting a banking partner. The financial security of your business funds should never be compromised by a bank’s disproportionate actions or lack of accountability.
If you’re a business owner, consider your options carefully and prioritize banks with transparent and fair practices. Learn from our experience and safeguard your operations from unnecessary risks.
Complaint By – Innoplix IT Private Limited
Beware of Account Freezes at YES Bank
“Your Business Deserves Better – Beware of Unjust Account Freezes at YES Bank.”
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Beware of Account Freezes at YES Bank
