Yes Bank had seen an erosion of deposits in the weeks leading to it being put under a moratorium by the Reserve Bank of India. Just recently, Yes Bank had to be bailed out by a consortium of lenders led by SBI in March.
On Friday, private sector lender Yes Bank launched a fixed deposit product with a health cover for COVID-19 illness.
With the Reliance General Insurance, the bank has tied up for the product under which it will bear the premium cost for a cover of Rs. 25000 for new fixed deposits of over Rs 1 lakh, an official statement said. With a 53 percent reduction in its deposit base, the bank closed its FY20.
As per the new scheme, new fixed deposit openings of Rs 1 lakh for one year and above will get the complementary health insurance cover apart from an interest of around 7.25 percent. On being tested positive, the insurance cover provides a lump-sum benefit of Rs25000 to beneficiaries. The bank said as
the amount will be offered without any hospitalization and thus it is different from traditional policies.
The fixed deposit can be availed to people aged between three months to 60 years and the scheme is valid only up to June 30. For both the quarantine period and diagnosis of COVID-19, the policy is offered. The Yes Bank said in a statement that, the customers who purchase the policy can contact their relationship manager or branch service teams or digitally. The insurance cover will enable the insured to claim 100 percent of the sum insured, in case they test positive. Also, the bank had launched COVID-19 Protection Insurance Cover which is a voluntary benefit policy being offered as a group cover to its customers.
Only one policy cover can be availed by the customers against their FD, irrespective of the number of FDs booked. For a deposit booked with the bank, the FD holder will be provided with an insurance certificate offered by the Reliance General Insurance and the bank will pay the premium on behalf of these customers for one year, according to Yes Bank.