New Delhi: The government notified a rescue plan for Yes Bank, led by State Bank of India (SBI) and joined by other lenders, as it looked to shield the banking sector from a widespread crisis.
The so-called reconstruction scheme, cleared by the Union Cabinet, took effect on March 13. The Reserve Bank of India’s (RBI) moratorium, imposing limits on withdrawals to prevent a run on deposits will be lifted in three working days, according to the notification.
“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.
It has appointed Prashant Kumar as the CEO and MD of the reconstructed Yes Bank. Kumar is the former CFO and Deputy MD of State Bank of India (SBI) and was appointed Administrator to the troubled lender by the Reserve Bank of India (RBI).
