To solve the crises of Yes Bank Limited, Reserve Bank of India has decided reconstruction of the bank and a scheme has been launched for this purpose. The name of the scheme is “Yes Bank Ltd. Reconstruction Scheme, 2020”. If you are a yes bank customer and desired to know about RBI Draft Resolution Scheme then you are on the right page, here you will get all the details about the draft planning made by the RBI for the revival of the bank.
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Yes Bank Revival Scheme
Yes, Bank Ltd. is a banking company registered under the Companies Act, 1956. Due to rapidly deteriorating financial position, RBI to take immediate action in public interest and as per the order of the central government issued on 5th March 2020 bank was placed under moratorium. Name of the revival scheme is Yes Bank Ltd. Reconstruction Scheme, 2020. The Reserve Bank of India invites suggestions and comments from members including the banks’ shareholders, depositors and creditors on Friday 6th March 2020 for the draft scheme. You can submit your suggestions and comments up to Monday, 9th March 2020 regarding the same. To propose any suggestion in this regard you must have to know what the draft scheme is, the detailed draft scheme is mentioned below please have a look.
Highlights Of 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/|
RBI Draft Resolution For Yes Bank
As per the Banking Regulation Act, 1949 section 45 sub-section 4 RBI is going to exercise its power and herby makes the scheme named “Yes Bank Ltd. Reconstruction Scheme, 2020”. SBI shows its interest to invest in this reconstruction scheme. Following are the information of a plan drafted by the RBI:
- The authorized capital of yes bank will stand altered Rs. 5000 crore and a number of equity shares will stand 2400 crore of Rs. 2 each.
- SBI will invest 49% in the equity of yes bank at a price not less than Rs.10/- (Face value of Rs.2/- and premium of Rs.8/- ).
- SBI shall not reduce its holding below 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 shall stand vacant.
- SBI shall have two nominee directors appointed in the board.
- Total no of members shall not exceed the maximum number as prescribed by AOA excluding the additional members appointed by the RBI by using the power given by the Banking Regulation Act, 1949 sub-section (1) of Section 36AB
- The member of the board will continue in the office for 1 year or till the alternate board is constituted by the Yes bank as per MOA and AOA
- All contracts, deeds, bonds, agreements, powers of attorney, grants of legal representation and other instruments of whatever nature, Any cause of action accrued, suit, appeal or other proceedings of whatever nature pending will remain same or unaffected
- All the employees of the yes bank shall continue in its service with the same remuneration and on the same terms and conditions of service (T&C).
- Board of Directors have the freedom to discontinue the services of the Key Managerial Personnel (KMPs) at any point of time by following a proper procedure
- There shall be no change in the offices or branch network of yes bank