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The government has notified the reconstruction scheme for the crisis-hit Yes Bank and has said that the withdrawal limit of ₹50,000 will be lifted in three working days, i.e till Wednesday, March 18.
Earlier this month, the Reserve Bank of India (RBI) had placed the bank under a moratorium and capped maximum withdrawals at ₹50,000 per account till April 3.
"The order of moratorium on the reconstructed bank... shall cease to have an effect on the third working day at 18:00 hours from the date of commencement of this Scheme," a government notification on Friday said.
Government issue Gazette notification following approval by Union Cabinet "Yes Bank Limited Reconstruction Scheme, 2020" yesterday.@nsitharamanoffc @RBI @DFS_India @PIB_India pic.twitter.com/wlGiD1FGX1— Ministry of Finance (@FinMinIndia) March 14, 2020
On Friday, March 13, Finance Minister Nirmala Sitharaman, while addressing the media after a Union Cabinet meeting, said that the Cabinet had approved Yes Bank's reconstruction scheme.
"State Bank of India(SBI) will invest up to 49 per cent equity in Yes Bank and other investors are also being invited," Sitharaman said.
As part of the rescue plan, SBI will also be required to maintain a minimum holding of 26 per cent in Yes Bank for three years. All the existing employees of Yes Bank will be retained.
The government also notified the appointment of Prashant Kumar, former CFO and Deputy MD of State Bank of India (SBI) as the CEO and MD of reconstructed Yes Bank. Kumar was appointed administrator of Yes Bank by RBI putting the bank under a moratorium.
Furthermore, former Non-Executive Chairman of Punjab National Bank Sunil Mehta was appointed as Non-Executive Chairman. Mahesh Krishnamurthy and Atul Bheda are Non-Executive Directors. The new board will be formed within seven days following the lift of the moratorium.Also Read: SBI To Invest ₹7,250 Cr To Revive Crisis-Hit Yes Bank
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