The government has notified the reconstruction scheme for crisis-hit Yes Bank and has said that the restrictions on withdrawals from its accounts up to Rs 50,000 will be lifted in "three working days", which is by Wednesday.
Yes Bank was placed under a moratorium earlier this month by the Reserve Bank of India (RBI), which took control of the board and also imposed a Rs 50,000-limit on withdrawals from the bank till April 3, sending thousands of depositors scurrying to retrieve their money.
"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 in a notification on Friday.
Yes Bank customers have been facing a tough time in accessing internet banking, using payment via UPI and withdrawing from ATMs after the RBI's sudden announcement to curb withdrawals led to a scramble to take out money.
Current account holders have complained of severe problems to service their debts and pay salaries. Many complained they were unable to pay wages to workers during the spring festival of Holi.
Finance Minister Nirmala Sitharaman had said on Friday that the Union Cabinet had approved Yes Bank's reconstruction scheme as proposed by Reserve Bank of India (RBI). "State Bank of India will invest up to 49 per cent equity in Yes Bank and other investors are also being invited," the Finance Minister said, addressing the media after a meeting of the Union Cabinet.
She also said that the administrator's office will be vacated after seven calendar days following the lifting of moratorium, and a new board will be constituted.
As part of the RBI-backed rescue plan for the troubled private sector lender, State Bank of India (SBI) will acquire up to 49 per cent stake in Yes Bank, and will be required to maintain a minimum holding of 26 per cent in Yes Bank for three years.
All the existing employees of Yes Bank will be retained as part of the deal.