Finance Minister Nirmala Sitharaman said on Friday that the Union Cabinet approved the Yes Bank reconstruction scheme proposed by Reserve Bank of India (RBI). SBI investing up to 49% equity in Yes Bank and other investors also being invited, the Finance Minister said, addressing the media after the Union Cabinet meeting.
The Finance Minister’s notes that the RBI has taken control of Yes Bank and stopped withdrawals from its accounts at Rs 50,000 till April 3 to protect depositors. As part of the RBI Bailout Plan for the worried investor, SBI agreed to invest Rs 2,450 crore immediately to buy 49% stocks in Yes Bank as part of the rescue deal.
SBI is obligatory to maintain a minimum property of 26% in Yes Bank for three years from the date of capital infusion and retain all the private sector investor’s employees as part of the deal.
Highlights in Finance Minister Speech About Yes Bank Crisis
- Cabinet approved the Yes Bank reconstruction scheme proposed by the RBI
- SBI going to invest up to 49% equity in Yes Bank
- Other investors also being invested
- The Yes Bank reconstruction plan to safeguard depositors mainly
- RBI Bailout Plan for Yes Bank to ensure the stability of the financial system