The government has announced the rescue plan for crisis-hit Yes Bank and has stated that the restrictions on withdrawals from its accounts upto Rs 50,000 will be lifted in ‘three working days’, which is by Wednesday.
Yes Bank was put under a moratorium by the Reserve Bank of India (RBI), which took charge of the board and also foisted a limit on withdrawals from the bank till 3rd April.
"The order of moratorium on the reconstructed bank... shall cease to have effect on the third working day at 18:00 hours from the date of commencement of this Scheme," the government said on Friday.
Yes bank clients have been undergoing a tough time in gaining access to internet banking, using payment through UPI and withdrawing from ATMs after the RBI’s unforeseen declaration to limit withdrawals lead to a scramble to take out money.
Current account holders have made a complaint of grave problems to service their depts and pay salaries. Many complained they were unable to pay wages to workers during the Holi.
Union Finance Minister Nirmala Sitharaman had stated on Friday that the Union Cabinet had agreed to Yes Bank’s reconstruction plan as suggested by RBI. "State Bank of India will invest up to 49 per cent equity in Yes Bank and other investors are also being invited," the Finance Minister said.
The Finance Minister also stated that the administrator’s office will be vacated after seven calender days following the lifting of moratorium, and a new board will be formed.
As part of the RBI backed reconstruction scheme, State Bank of India will acquire up to 49% stake in Yes Bank, and will be required to maintain a minimum holding of 26% in Yes Bank for three years.
All the existing employees of the Yes Bank will be retained as part of the deal.