Moratorium on Yes Bank to be lifted on 18 March; Prashant Kumar appointed MD, CEO of new board
The Reserve Bank of India (RBI) had on 5 March put a moratorium on Yes Bank restricting withdrawals to Rs 50,000 per depositor till 3 April
The government has notified the Yes Bank reconstruction scheme as per which the moratorium on the troubled private sector lender will be lifted on 18 March. Current administrator Prashant Kumar has been appointed managing director and CEO of the newly-reconstructed board.
The Yes Bank Reconstruction Scheme 2020, shall come into force on 13 March, the gazette notification said.
The Reserve Bank of India (RBI) had on 5 March put a moratorium on Yes Bank restricting withdrawals to Rs 50,000 per depositor till 3 April.
"The order of moratorium on the reconstructed bank issued by the government...shall cease to have effect on the third working day at 18:00 hours fron the date of commencement of this scheme," the notification said.
The scheme has been notified on 13 March and hence the moratorium will be lifted on the third working day or 18 March.
Rights & liabilities of new board
The notification also clarified that "all existing contracts, agreements, etc., will continue as before the reconstruction scheme. The deposits and liabilities, liabilities and obligations of creditors will also continue as before."
"All employees to continue to be employees of the reconstructed bank on the same terms and conditions for a minimum of a year," it stated, adding that the board of directors may discontinue services of key managerial personnel "as deemed necessary".
"Moratorium on the bank to be lifted on the third working day at 18.00 hours (6 pm) from date of commencement of the scheme," it stated.
This is in line with what Finance Minister Nirmala Sitharaman had stated on March 13 in regards to the moratorium on Yes Bank.
The notification has to this effect stated: "The order of moratorium on the reconstructed bank issued by the Government of India in the Ministry of Finance, Department of Financial Services dated March 5, 2020, shall cease to have an effect."
--With PTI inputs
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