New Delhi: The government on Saturday notified the reconstruction scheme for Yes Bank and said restrictions on withdrawals from its accounts up to Rs 50,000 will be lifted in “three working days”.
Earlier this month, the Reserve Bank of India (RBI) placed Yes Bank under moratorium and took over control of the board. They also imposed a Rs 50,000-limit on withdrawals from the bank till April 3.
Soon, panic gripped the bank's customers who queued before ATMs and bank branches to withdraw money. They were also not able to access Internet banking and other services like digital payments through another party's platform. Forex services and credit card purchases, among others, were also impacted.
The government, in a notification on Friday, said: "The order of moratorium on the reconstructed bank... shall cease to have effect on the third working day at 18:00 hours from the date of commencement of this Scheme.”
The Centre approved a bail-out plan for Yes Bank proposed by the Reserve Bank under which SBI would infuse Rs 7,250 crore in the lender for 49 per cent equity.
ICICI Bank will infuse Rs 1,000 crore in the troubled lender in lieu of picking-up 100 crore shares, while Axis Bank said it will invest up to Rs 600 crore in Yes Bank for up to 60 crore shares.
Rana Kapoor, 62, former MD and CEO of the private bank, has been arrested by the Enforcement Directorate under provisions of the Prevention of Money Laundering Act (PMLA).
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