The government on Friday said that the restrictions on withdrawals of up to Rs 50,000 from crisis-hit Yes Bank will be removed within three working days, NDTV reported. “The order of moratorium on the reconstructed bank... shall cease to have effect on the third working day at 18:00 hours from the date of commencement of this scheme,” the government said, notifying a reconstruction scheme.
The Reserve Bank of India had last week taken control of Yes Bank, after the lender – which is laden with bad debts – failed to raise the capital it needs to stay above mandated regulatory requirements. Placing Yes Bank under a 30-day moratorium, the central bank had imposed a limit of Rs 50,000 on withdrawals to protect depositors.
On March 10, Yes Bank had partially restored its NEFT and Immediate Payment Service, or IMPS. IMPS is an instant payment inter-bank electronic funds transfer system. It offers inter-bank electronic fund transfer service through mobile phones 365 days a year.
Meanwhile, ICICI Bank said on Friday that it will invest Rs 1,000 crore in Yes Bank as part of the RBI’s reconstruction plan, ANI reported. The decision was taken at a board meeting of ICICI Bank on Thursday.
The board decided to invest Rs 1,000 crore in equity shares of Yes Bank, subject to regulatory and government approval. This investment will result in ICICI Bank Ltd holding over 5% of the shares in Yes Bank.
Axis Bank, on the other hand, will invest Rs 600 crore at Rs 10 per share in Yes Bank, Mint reported. HDFC too announced an investment of Rs 1,000 crore by investing in 100 crore equity shares for a consideration of Rs 10 per share, with Rs 8 as premium.
India’s largest lender, the State Bank of India, will buy 49% stake in Yes Bank, Union Finance Minister Nirmala Sitharaman announced earlier on Friday. The Union Cabinet had approved the reconstruction plan for Yes Bank on Friday.