To resolve the crises of Yes Bank Limited, the Reserve Bank of India has decided to rebuild the bank and a scheme has been launched for this purpose. The name of the scheme is “Yes Bank Limited Reconstruction Scheme, 2020”. If you are a yes bank customer and want to know about the RBI draft resolution scheme then you are on the right page, here you will find all the details about the draft planning done by RBI for the revival of the bank.
RBI Draft Resolution Scheme
| Name of the scheme | Yes Bank Ltd. Reconstruction Scheme, 2020 |
| Announced on | Friday, 6th March, 2020 |
| Announced by | Reserve Bank of India |
| Announced for | Yes bank |
| Objective | Reconstruction of the bank |
| Official web address | https://www.rbi.org.in/ |
Yes Bank Revival Scheme
Yes, Bank Limited is a banking company registered under the Companies Act, 1956. Due to the rapidly deteriorating financial situation, the RBI was placed under the bank to take immediate action in the public interest and under a central government order issued on 5 March 2020. Moratorium. The Revival Scheme is named Yes Bank Limited Reconstruction Scheme, 2020. The Reserve Bank of India has invited suggestions and comments from members, including shareholders, depositors and creditors of banks on Friday 6 March 2020 for the draft plan. You can submit your suggestions and comments by Monday, March 9, 2020. To propose any suggestion in this regard, you need to know what the draft plan is, detailed draft plan is mentioned below. Please have a look.
RBI draft resolution for Yes Bank
As per section 45 sub-section 4 of the Banking Regulation Act, 1949, RBI is going to exercise its power and formulate the scheme under the name “Yes Bank Limited Reconstruction Scheme, 2020”. SBI shows its interest to invest in this reconstruction plan. Following is the information about the draft of the plan by RBI:
- The authorized capital of Yes Bank was Rs. Will change. 5000 crores and several equity shares will be worth Rs. 2400 crores. 2 each.
- SBI Yes Bank’s 49% investment in equity of Rs. 10 / – at a price less than Rs. (Face value of Rs. / And premium Rs. 8 / -).
- SBI will not reduce its stake to less than 26% before three years of the date of investment
- A new board will be constituted from the date of appointment and office of the administrator of Yes Bank.
- The SBI will have two nominated directors appointed to the board.
- The total number of members shall not exceed the maximum number prescribed by the AOA except the additional members appointed by the RBI using the power given by sub-clause (1) of section 36AB of the Banking Regulation Act, 1949.
- The board member will continue in office for 1 year or as long as the alternative bank is constituted by Yes Bank as per MOA and AOA.
- All contracts, deeds, bonds, agreements, powers of attorney, grant of legal representation and other instruments of whatever nature, any cause of action, suit, appeal or other proceeding of whatever nature are pending shall remain the same or unaffected.
- All employees of Yes Bank will continue in their service with the same remuneration and on the terms of service (T&C).
- The Board of Directors is at liberty to discontinue the services of Chief Managerial Personnel (KMP) at any time by following due process
- Yes, there will be no change in the offices or branch network of the bank