Happily, for Yes Bank account holders this day all restrictions will be lifted

New Delhi, 13 March 2020 Friday

An important announcement has been made at the press conference after the Cabinet Meeting was completed. The Cabinet has approved Yes Bank's reconstruction scheme.

Finance Minister Nirmala Sitharaman showed that the State Bank of India (SBI) will buy 49% stake in Yes Bank.

SBI cannot reduce its stack to less than 26% for 3 years. Apart from this, private lenders will invest in it. For private lenders, the lock-in period will be up to 3 years. However, the limit for the stack is up to 75%.

Within 3 days the moratorium period is over

After the Cabinet meeting, the Finance Minister gave important information to the media that it would soon announce a new notification on Yes Bank Crisis.

For YES Bank Depositors, the relief will be that the Mauritium Period will be terminated within 3 days of the notification. Which means that all restrictions from Yes Bank will be lifted within 3 days of the notification being announced.

Creation of new board within 7 days

The Finance Minister has also stated that a new board will be formed within 7 days of the scheme's notification. Prashant Kumar, the RBI-appointed administrator, will be removed after the formation of the new board. He also said that the new board will also have two directors of SBI.

When asked the finance minister about the drastic decline in the local stock market, he said that the government along with the RBI was keeping an eye on it.