Yes Bank crisis: Moratorium will be lifted 3 days after notifying RBI's revival scheme, says FM Nirmala Sitharaman

Image courtesy: Reuters

New Delhi: Finance Minister Nirmala Sitharaman on Friday (March 13) that moratorium on Yes Bank will be lifted within 3 days of notifying the Reserve Bank of India`s reconstruction scheme for the troubled bank. The scheme was approved by Cabinet meeting today held under the chairmanship of Prime Minister Narendra Modi. 

The Finance Minister said, "State Bank of India (SBI) will invest up to 49 per cent of the equity. Other investors are also being invited," adding "There will be 3 years lock-in period for SBI for up to 26 per cent of their investment, and for others, there will be a lock-in period of 3 years of 75 per cent of their investment."

Sitharaman further said, "Authorised capital has been raised from Rs 1100 crores to Rs 6200 crores of Yes Bank to accommodate immediate and subsequent raising of capital requirements."

"The moratorium will be lifted within 3 days of notifying the scheme. A new board, having at least two directors of SBI, will take over within 7 days of the issuance of the notification," the FM added. 

Nirmala Sitharaman, along with Piyush Goyal and Prakash Javadekar was briefing media on the outcome of the cabinet meeting today. 

The press conference comes at a time when the country is facing economic slowdown, coronavirus scare, and Yes Bank crisis.