Finance Minister Nirmala Sitharaman Informed About Yes Bank Reconstruction Scheme

Nirmala Sitharaman says Cabinet approves Reconstruction Scheme of YES BANK

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Yes Bank Crisis: Very good news is coming soon for the customers of the country’s fifth-largest private bank. The ban on cash withdrawal for Yes Bank customers is expected to be lifted by next week. Sources say that till next week, the cash withdrawal of Yes Bank customers, the restriction of 50 thousand rupees per customer will be removed. After this, customers will be able to withdraw their money deposited in Yes Bank according to their needs. Today, the Union Cabinet has approved the reconstruction scheme of Yes Bank. Under this scheme, State Bank of India is going to buy a 49 percent stake in Yes Bank.

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Finance Minister Nirmala Sitaraman on Press Conference on National Infra Pipeline
Finance Minister Nirmala Sitharaman | Image: ANI

Giving details of the Union Cabinet approving Yes Bank Reconstruction Scheme, Finance Minister Nirmala Sitharaman said that the withdrawal limit of Rs 50 thousand per customer on Yes Bank customers after three working days after the notification of Reconstruction Scheme was issued. It has been installed, it will be removed. At the same time, sources say that the notification will be released very soon and cash withdrawal on Yes Bank customers will be withdrawn by next week.

State Bank of India, the country’s largest public bank, is going to buy a 49 percent stake in Yes Bank’s Reconstruction Scheme. Apart from this, other companies are also going to invest in the bank. Under this scheme, there will be a 3-year lock-in period for State Bank of India, under which SBI will not be able to reduce its stake to less than 26% for 3 years. The same other investors who will invest in Yes Bank will not be able to reduce their investment by more than 25% for the next 3 years.

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That is, directors other than SBI will be mandatory to keep 75% of their total investment in Yes Bank for 3 years. Under Yes Bank’s Reconstruction Scheme, State Bank of India will buy 725 crore shares at Rs 10 per share. This means that SBI’s investment will be Rs 7250 crore. On the other hand, the board of private bank ICICI has also approved an investment of Rs 1000 crore in Yes Bank. ICICI Bank will buy 100 crore shares in Yes Bank for Rs 10 per share.

Yes Bank’s board will be reorganized in 7 days

Giving information about the Yes Bank Reconstruction Scheme, Finance Minister Nirmala Sitharaman said that Yes Bank’s board will be restructured during the seven working days after the notification is issued. This board will consist of 2 people from the State Bank of India. At the same time, the moratorium on YES Bank customers will be removed in three working days after the period notification.

Sources said that till next week the moratorium period on Yes Bank customers will be removed. That is, there is good news for the customers of Yes Bank from next week. Customers will now be able to withdraw more than 50 thousand rupees according to the need. Significantly, in the case of Yes Bank fraud, Yes Bank founder and former MD Rana Kapoor is in the custody of the police.

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