Cabinet approves reconstruction scheme for cash-strapped YES Bank

The moratorium imposed on the bank will be lifted within three days after the notification is issued

Finance Minister Nirmala Sitharaman on Friday said that the Union Cabinet has approved the reconstruction scheme for Yes Bank as proposed by the Reserve Bank of India (RBI) and the moratorium will be lifted within three days after the notification is issued. 

Giving details about the scheme, Sitharaman said the State Bank of India (SBI) will invest for 49 per cent equity in Yes Bank and other investors are also being invited. There will be a three year lock-in period for all the investors, she said. However, the lock-in period for SBI would be only for the 26 per cent