The government has notified the reconstruction plan for crisis-hit Yes Bank after the Union Cabinet cleared and said that the caps on withdrawals from its accounts up to Rs. 50,000 will be lifted in “three working days.”
In a notification issued by the government, it said that the order of moratorium on the reconstructed bank issued by the Government of India shall cease to have effect on the third working day at 18:00 hours from the date of commencement of this scheme.
The RBI had taken control of Yes Bank Ltd on March 5, and capped withdrawals at Rs 50,000 and imposed restrictions on its operations till April 3 to put in motion a bailout plan for the troubled bank.
The government also notified the appointment of Prashant Kumar, former CFO and Deputy MD of State Bank of India (SBI) as the CEO and MD of reconstructed Yes Bank. Kumar was appointed administrator of Yes Bank by the Reserve Bank of India (RBI) after it put the troubled lender under a moratorium on March 5.
Kumar will vacate office as an administrator within seven days of the cessation of the moratorium.
The government also appointed former Non-Executive Chairman of Punjab National Bank Sunil Mehta as a Non-Executive Chairman. Mahesh Krishnamurthy and Atul Bheda are Non-Executive Directors. The new board is also to be formed within seven days from cessation of the moratorium.
The notification also states “the investor bank (SBI) shall nominate two more officers as Directors” and the “RBI may appoint one or more additional directors as necessary.”