Published On: Sat, Mar 14th, 2020

Yes Bank crisis: Moratorium on withdrawl to be lifted on March 18

New Delhi: What could viewed as a major relief for yes bank customers, the government in a notification announced that the moratorium on bank transactions will be lifted on March 18 at 6 pm.

The SBI and other investors will be exempted from any capital gains tax from investment in Yes Bank

The decision is a part of the process to come up with a new reconstruction scheme for the troubled bank and to safeguard depositors` interest.

Also the notification announced the appointment of current administrator Prashant Kumar as the new managing director, CEO of crisis-ridden Yes Bank. Kumar is the former Chairman of PNB. He will be the Non Executive Chairman while Mahesh Krishnamurthy and Atul Bheda will be the two independent directors.

As per the notification, the SBI and other investors will be exempted from any capital gains tax from investment in Yes Bank.

Union Finance Minister Nirmala Sitharaman in a press conference on Friday had announced that the new board will have at least two directors of SBI, and they will take over within seven days of the issuance of the notification.

The Prime Minister Narendra Modi-led Union Cabinet has already approved the restructuring scheme of Yes Bank to safeguard depositors` interest and ensure a stable financial banking system.

The Reserve Bank of India (RBI) has unveiled a bailout plan for Yes Bank, under which SBI will invest up to Rs 10,000 crore in the troubled bank. Last week, the Reserve Bank of India (RBI) superseded Yes Bank`s board to take control and also capped withdrawals from its accounts.

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