The Reserve Bank of India (RBI), earlier this month, had put the Yes Bank under the moratorium. RBI had also taken control over the board of the bank.
Mumbai| On Saturday, the government notified the reconstruction scheme for the Yes Bank. It also said that the restrictions to withdraw only Rs. 50,000 from the accounts will be lifted in ‘three working days.
The Reserve Bank of India (RBI), earlier this month, had put the Yes Bank under the moratorium. RBI had also taken control over the board of the bank. They had also imposed restrictions on withdrawal keeping Rs. 50,000 withdrawal limit for all accounts till 3 April.
After the announcement of the moratorium, account holders panicked and qued up in front of ATMs and branches of Yes Bank to withdraw money from their accounts. The account holders were also unable to perform net banking and digital transactions from third-party platforms. Credit card transactions and forex services were also impacted.
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The notification released by the government on Friday said, “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.”
According to RBI’s bail-out plan for Yes Bank approved by the centre, the State Bank of India will lend 7,250 crores for 49 per cent equity.
ICICI and Axis bank will also infuse sums to bail out the Yes Bank. ICICI bank will lend Rs 1,000 crore to pick-up 100 crore shares. Axis Bank will lend 600 crores to pick-up 60 crore share.
Ranka Kapoor, the former CEO and MD of Yes Bank has been arrested by Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA).
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