RBI Draft Resolution Scheme
Reserve Bank of India has decided reconstruction of Yes Bank Limited to solve the crises of the bank is facing. RBI has launched a scheme for the reconstruction of the bank. RBI has launched the Yes Bank Ltd Reconstruction Scheme, 2020 to solve the recent crises.
All the Yes Bank customers who are looking for details about RBI Draft Resolution Scheme can read the details below. The article shares all the information regarding the draft plan made by the Reserve Bank of India for the revival of Yes Bank.
Yes Bank Ltd Reconstruction Scheme
Yes Bank is a financial organisation which is registered under the Companies Act, 1956. The bank was placed under moratorium by RBI on 5th March 2020. Yes Bank customers were prohibited from withdrawing more than 50000 from their bank accounts.
RBI invited suggestions from the banks’ shareholders, depositors and creditors for the draft scheme mentioned below:
RBI Draft Resolution For Yes Bank
RBI made the Yes Bank Ltd Reconstruction Scheme, 2020 by exercising its power as per the Banking Regulation Act, 1949 section 45 sub-section 4. The State Bank of India has shown interest in investing in this reconstruction scheme.
The information of Yes Bank Ltd Reconstruction Scheme, 2020 by the RBI is mentioned below:
- The authorized capital of Yes Bank will be changed to Rs. 5000 crore
- The number of equity shares will be 2400 crore of Rs. 2 each
- State Bank of India will invest 49% in the equity of Yes Bank
- SBI will invest in the equity at a price not less than Rs.10/-
- The Face Value of these will be Rs.2/- and premium of Rs.8/-
- State Bank of India maintain its holding of 26% and will not reduce this before three years from the date of investment
- The office of the administrator of Yes Bank will be vacant
- A new board will be constituted from the date of appointment
- SBI will have two nominee directors appointed in the board
- Total no of members will not exceed the maximum number as prescribed by AOA.
- This will not include the additional members appointed by the RBI using the power given by the Banking Regulation Act, 1949 sub-section (1) of Section 36AB
- The appointed board member will hold the office for 1 year or till the alternate board is constituted by the Yes bank as per MOA and AOA
- The following instruments will remain unaltered:
- Contracts
- Deeds
- Bonds
- Agreements
- Powers of attorney
- Grants of legal representation
- Any cause of action accrued, suit, appeal or other proceedings will remain same or unaffected
- The employees of the Yes Bank can continue their services on the same pay scale and the same terms and conditions of service.
- Board of Directors have the right to discontinue the services of the Key Managerial Personnel (KMPs) following a proper procedure
- All the offices or branch network of Yes Bank will remain as it is.