Cabinet Highlight: YES Bank moratorium to be lifted within 3 days, says FM

Cabinet has cleared a draft resolution scheme for cash-starved YES Bank. Last week, the Reserve Bank of India (RBI) had announced a draft scheme of reconstruction for the lender. Follow LIVE UPDATES

Union Ministers Nirmala Sitharaman, Piyush Goyal and Prakash Javadekar briefed media on the outcome of the cabinet meeting on Friday. The government announced lifting the moratorium on YES Bank within three days and hiking dearness allowance for central government employees by 4 per cent.

The Cabinet has cleared a draft resolution scheme for cash-starved YES Bank. Last week, the Reserve Bank of India (RBI) had announced a draft scheme of reconstruction for the lender, according to which the strategic investor in the bank would pick up 49 per cent stake and not reduce holding to under 26 per cent before three years from the date of capital infusion.

ALSO READ: Union Cabinet clears draft resolution scheme for YES Bank revival

 

4:13 PM

Consultation underway with PMO on Coronavirus: Sitharaman

The Finance Minister said that each ministeries are having engagements with the concerned industries and we are not waiting for them to finish, the consultations are being done with the PMO as they finish. On whether private sector will chip in YES Bank, the minister said thare has been no discussions. 

4:10 PM

Here is what FM Sitharaman said on YES Bank

*Cabinet approves reconstruction scheme for Yes Bank as proposed by RBI

*SBI to invest up to 49% equity in Yes Bank; other investors being sought

*SBI to have 3-yr lock in period for 26% of its equity in Yes Bank; other investors to have similar lock-in for 75% of equity

*Moratorium on Yes Bank to be lifted within 3 days of notification of the reconstruction scheme; board to be in place in 7 days

4:09 PM

Govt monitoring the development: FM on exposure of banks to Coronavirus

FM Sitharaman on exposure of banking sector to Coronavirus said that she had spoken to trade sectors and we are continuously monitoring the issue in coordination with all the ministeries. 

4:07 PM

The draft resolution states SBI, would pick up 49 per cent stake in YES Bank

* The RBI governor had recognised that there is a global development and that he is open to The Union Cabinet on Friday cleared a draft resolution scheme for cash-starved YES Bank. The strategic investor in the bank, SBI, would pick up 49 per cent stake and not reduce holding to under 26 per cent before three years from the date of capital infusion.

 

* The scheme was announced a day after the RBI imposed a month-long moratorium on the bank, restricting withdrawals to Rs 50,000 per depositor till April 3. State Bank of India (SBI) on Thursday said it would infuse Rs 7,250 crore into ailing YES Bank and pick 7,250 million shares at Rs 10 each, and its shareholding would remain within 49 per cent of the paid-up capital of the private sector lender.

* “The executive committee of the central board at its meeting on March 11 accorded approval for purchase of 7,250 million shares of YES Bank at a price of Rs 10 a share, subject to regulatory approvals,” SBI said in an exchange filing on Thursday

4:02 PM

Severe volatility and stock markets have suffered globally: Sitharaman

Speaking on economic concerns of Coronavirus, FM Nirmala Sitharaman said that the state government and the Centre has been monitoring the development and ensuring Indian insterests. Global markets have had severe volatility and stock markets have suffered elsewere and we are concious of the the development and closely monitoring with the RBI. We have had meetings with the concerned industries and each department is spending time on the issue. 

4:00 PM

Cabinet approved Remission of Duties or Taxes on Export Product scheme

Cabinet approved Remission of Duties or Taxes on Export Product (ROTDEP) scheme proposed in the Budget by Finance Minister Nirmala Sitharaman. Announcing the decision Union Minister Piyush Goyal said that scheme will phase out MIES.

3:56 PM

Moratorium on YES Bank to be lifted within 3 days: Sitharaman

SBI is purchasing 49 per cent with a lockin period of 3 years on 26 per cent shares. Private inmvestors are also being called in. The moratorium will be lifted within 3 days and a new board will be constituted and two directors from SBI will be made the members. Seven days after the notification the Administrator will vacate his office. 

3:52 PM

Depositors interest, stability to Yes Bank at the core of draft resolution

Finance Minister Nirmala Sitharaman said that the decision to clear draft resolution scheme for YES Bank revival keeps at its core the depositors interest, stability to Yes Bank. 

3:50 PM

780 km upgradation of National Highways approved: Javadekar

The government approved 780 km upgradation of National Highways with focus on environment by pushing solar equipments, recycling plastic. The Green NH Corruidor will be environment friendly with focus on using stones instead of cement, Javadekar said. 

3:46 PM

MSP for Copra increased by Rs 439: Javadekar

The government has increased MSP for Copra by Rs 439 for milling quality and for ball category from Rs 9920 to Rs 10300. Union Minister Prakash Javadekar said that this will stabilise the markets and farmers in south India will benefit from the decision. Over 15mmt of Copra is produced in four southern states. 

3:42 PM

DA to be increased by 4% from Jan 1, 2020

48 lakh employees and 63 lakh pensioners of Central government will be benfitted as the government approves increasing Dearness Alliowanvce by 4 per cent. The DA will now be 21 per cent from 17 per cent. The increase will cost the government Rs 14595 crore. 

3:29 PM

Watch | Cabinet briefing by Union Ministers Prakash Javadekar, Nirmala Sitharaman

3:28 PM

FM Sitharaman and Cabinet ministers to brief media shortly

Finance Minister Nirmala Sitharaman and other ministers will shortly brief the media on the Cabinet meeting. Stay tuned for more.