Central Cabinet approval for RBI restructuring scheme for Yes Bank

(PTI) New Delhi, March 13, 2020, Friday

The restrictions, including cash withdrawals placed at Yes Bank, will be lifted within three days of the notification's release, and the notification will be announced shortly, Finance Minister Nirmala Sitharaman said today.

Meanwhile, ICICI Bank will invest Rs 1000 crore in shares of Yes Bank. HDFC will also invest Rs 1000. Axis Bank will buy 60 million shares of Yes Bank for Rs 600 crore.

Sitaraman further said that the RBI is also in touch with other financial institutions. At present, no more than 50,000 rupees can be deposited in Yes Bank. Today, the Union Cabinet has approved the scheme of restructuring of Yes Bank proposed by RBI. He further said that State Bank of India (SBI) will invest 49 per cent equity in Yes Bank.

Other investors have also been invited. Yes Bank has been closely monitored for the last one year. Withdrawal restrictions will be removed within three days of the notification being issued and a new board will be formed within seven days.