The new board of Yes Bank will assume charge on 26 March 2020.
The Reserve Bank of India (RBI) governor Shaktikanta Das held a press conference at 4 pm on Monday.Das said that the moratorium on Yes Bank will be lifted on 18 March 2020 at 6 pm. He added that the new board will take over on 26 March 2020 and the administrator will vacate his position.
Das assured depositors of Yes Bank that their money with the private lender is 'completely safe' and added that there is no need to withdraw their funds in panic.
"Happy to see large number of Yes Bank depositors have been loyal despite difficulties in the past year; would urge them to continue support," he said. "If there is a requirement, RBI will provide liquidity support to Yes Bank," he added.
The RBI Governor added that state governments have been reassured about the health of private lenders.
On March 5, Yes Bank had been placed under a 30-day moratorium period, placing a Rs 50,000 withdrawal limit on customers. The RBI had superseded the board and appointed an administrator.
The RBI formed a reconstruction scheme to rescue the lender, which has been formally notified. Das called the plan to restructure Yes Bank as credible and sustainable.
Shares of Yes Bank surged 45.21% at Rs 37.10 on Monday.
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