You are here: Home » Finance » News » Banks
Business Standard

YES Bank crisis: Cabinet likely to take up revival plan on March 13

RBI Governor Shaktikanta Das had met SBI Chairman Rajnish Kumar on Friday to discuss the way forward.

Somesh Jha  |  New Delhi 

YES Bank
The draft ‘YES Bank Ltd Reconstruction Scheme, 2020’ will be put up for the approval of the Union Cabinet when it meets on Friday, the official said.

The Reserve Bank of India’s (RBI’s) revival plan for YES Bank will need the central government's approval, which may come in by Friday, according to a government official.

The draft ‘YES Bank Ltd Reconstruction Scheme, 2020’ will be put up for the approval of the Union Cabinet, chaired by Prime Minister Narendra Modi, when it meets on Friday, the official said.

The RBI had made the draft reconstruction scheme public on Friday, a day after it took over the board of the troubled lender and imposed restrictions on lending and withdrawal activities. The RBI had invited comments from (SBI), which is expected to hold 49 per cent stake in YES Bank, and other stakeholders by Monday.

RBI Governor had met SBI Chairman on Friday to discuss the way forward.

ALSO READ: YES Bank account holders won't be allotted shares in SBI Card IPO: sources

chart

After examining comments on the draft scheme, the RBI may modify the provisions and send it for the approval of the central government. According to the Banking

Regulation Act, 1949, the Centre can approve the scheme without any modifications or with some changes “as it may consider necessary”.

The scheme will come into force from the date as specified by the central government and there may be “different dates for different provisions of the scheme”, according to the law.

First Published: Wed, March 11 2020. 22:09 IST
RECOMMENDED FOR YOU