The moratorium on Yes Bank is set to be lifted at 6pm on Wednesday, two weeks after it was imposed by the RBI with a withdrawal cap of Rs 50,000.
Yes Bank has told its customers that full banking services will be resumed from 6pm. Salary account holders will be able to access digital platforms and services including net banking and the mobile app. UPI Services including that on third party platforms will also resume working from 6pm on Wednesday.
Current account holders too, will be able to access all of Yes Bank’s banking services including retail and corporate net banking and mobile applications such as YES MSME, YES Mobile, etc. They will also be able to issue new LC/ BG (letter of credit /bank guarantee), remittances, forward contracts and other trade finance services.
Account holders can also clear issued and deposited cheques along with making bulk payments, salary payments, cheque collections, E-collect, and nodal account services.
“Your cheque receivables that were on hold during the past several days will be credited to your account(s). We would also like to confirm that all existing LC or BG will be honoured as per the agreed terms and conditions,” Yes Bank told its customers in an email communication.
However, Yes Bank has also said that it will be updating its systems on Wednesday from 3:30 pm to 5:59 pm. During this scheduled downtime, you will not be able to use Yes bank ATM, debit card, UPI, net banking and Yes mobile app.
After Yes Bank was placed under a moratorium on March 5, the RBI announced a reconstruction scheme for the bank on March 6. After this, State Bank of India and several private banks came forward to invest in the bank.
SBI will hold 49% stake in the bank and has committed Rs 7,250 crore. Under the Reserve Bank-proposed reconstruction scheme for Yes Bank, SBI shall not reduce its holding below 26% before completion of three years from March 14.
Among the private players, ICICI Bank and Housing Development Finance Corporation (HDFC) have committed Rs 1,000 crore each. Axis Bank and Kotak Mahindra Bank will invest Rs 600 crore and Rs 500 crore respectively.
Both Federal Bank and Bandhan Bank have been allotted shares for Rs 300 crore each as per their commitment and IDFC First Bank has been issued equity shares in the crisis-ridden bank for a consideration of Rs 250 crore.
As per the scheme, private investors including the banks will be mandated to have a lock-in period for 75% of their investment in the bank. The remaining 25% of the shareholding allotted to each investor shall be freely transferable and shall not be subject to any lock-in.
According to the government notification, Yes Bank's authorised share capital will be revised upwards from Rs 1,100 crore to Rs 6,200 crore. The number of total equity shares will stand altered to Rs 3,000 crore of Rs 2 each aggregating to Rs 6,000 crore. Authorised preference share capital shall continue to be Rs 200 crore.