Govt nod to reconstruction scheme for Yes Bank; moratorium to be lifted in 3 days after notification of revival plan

The government on Saturday notified the plan to restructure the crisis-hit Yes bank and said that the moratorium which was imposed on it on March 5 will be lifted within three working days. The plan was approved by the Union Cabinet headed by Prime Minister Narendra Modi on Friday.

The plan comes a day after finance minister Nirmala Sitharaman said that SBI will invest up to 49% of equity in Yes Bank as part of the RBI-supervised ‘Yes Bank Ltd Reconstruction Scheme, 2020’.

A new board, including two directors from SBI, will be set up within seven days. The Reserve Bank of India (RBI)-appointed administrator, former SBI chief financial officer Prashant Kumar, will vacate the office seven days after the moratorium is lifted, Sitharaman said at the media briefing.