YES Bank Announces Major Changes in Salary & Merchant Accounts

Private sector lender YES Bank has announced a revision in its fee structure for salary and defense-related accounts, along with merchant current accounts.

The new charges will be effective from October 1, 2025. These changes will impact customers with Smart Salary, YES Vijay, Defense Pension, Agniveer, and Merchant accounts.

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Smart Salary Accounts

Under the revised rules:

Smart Salary Advantage account holders will now receive a RuPay debit card with a joining fee of ₹199.

For Smart Salary Exclusive and higher variants, Engage or Explore debit cards will be issued.

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Joining and renewal fees for debit cards will be waived only if the account maintains a monthly salary credit or average monthly balance (AMB) of ₹10,000.

ATM Charges (Other Banks):

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3 free transactions/month in metro cities

5 free transactions/month in non-metros

After that: ₹23 per financial transaction and ₹10 per non-financial transaction.

International Usage:

Cash withdrawal: ₹150

Balance inquiry: ₹20

Penalty Charges:

Cheque return: ₹500 (first time), ₹750 (afterward)

ECS return: ₹550 (first time), ₹600 (afterward)

Though salary accounts are treated as zero-balance accounts, if no salary is credited for three consecutive months, they may be converted to regular savings accounts with non-maintenance charges up to ₹750.

YES Vijay Accounts

Account holders will get Element and Engage debit cards free of charge.

Cash transactions at branches or bulk note acceptors will be free up to ₹1 lakh or 2 transactions per month.

Beyond this: ₹4.5 per ₹1,000 (minimum ₹150)

Penalty Charges:

Cheque return (insufficient balance): ₹350 (first time), ₹750 (afterward)

ECS return: ₹500 (first time), ₹550 (afterward)

Defense & Pension Accounts

No changes for these accounts:

Continue to enjoy unlimited free transactions

Free NEFT/RTGS (inward and outward)

Free digital banking and ATM services

Merchant Account Fee Changes (Also Effective October 1)

Merchant Easy Account:

Free cash deposit limit: 12 times the previous month’s AMB, capped at ₹1.5 crore

AMB requirement: ₹25,000

Deposit beyond free limit: ₹4 per ₹1,000 (minimum ₹50)

Merchant Prime Account:

Free cash deposit limit: 15 times the previous month’s AMB, capped at ₹5 crore

AMB requirement: ₹50,000

Same extra deposit charge applies: ₹4 per ₹1,000 (minimum ₹50)

Small Denomination Notes:

Free up to ₹10,000/month

Above this: 2% charge

Coin Deposits:

Free up to ₹1,000

Above this: 5% charge

If merchants complete the required transaction value through POS, QR, or Soundbox, they will be exempted from AMB penalties. Otherwise, a penalty of ₹250 to ₹500 will be applied for shortfalls.

Transaction and Service Charges

RTGS, NEFT, and intra-bank transfers: Free

First 5 IMPS transactions: Free

After that: ₹2.5 to ₹15 per transaction

Checkbook: Free up to 100 pages, then ₹2 per page

Annual Debit Card Fee (Element Business): ₹349

International ATM withdrawal: ₹150

Balance inquiry: ₹20

Non-YES Bank ATM usage:

3 free transactions in metros, 4 in non-metros

After that: ₹23 (financial), ₹10 (non-financial)

Other Charges:

Cheque and ECS return: ₹750 each

Technical cheque return: ₹50

Outstation cheque collection: ₹100

Printed account statement: ₹100

Account closure: ₹500 to ₹750

SMS alerts, emails, and most digital banking services will continue to be free.

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