New Delhi, March 6: With the Union Finance Minister Nirmala Sitharaman asking the Reserve Bank to monitor and probe the discrepancies in the YES Bank issue, RBI has consituted a draft scheme of reconstruction for the crisis-hit private lender. Under the scheme, SBI to invest in reconstructed bank for up to 49 percent stake in YES Bank. YES Bank Crisis: FM Nirmala Sitharaman Says 'Centre, RBI Monitoring Private Lender Since 2017'; Asks RBI to Probe Matter.

Here are some key takeaways of the RBI's Draft Scheme:

1) SBI has expressed its willingness to invest in YES Bank, which might amount to Rs 2,450 crores or 49 percent.

2) YES Bank's authorised capital to be altered to Rs 5,000 crore, and equity shares have been reduced to Rs 2,400 crore of face value of Rs 2.

3) A three-year-lock-in period would be applicable for investors, who cannot reduce their holding below 26 percent.

4) The SBI can appoint two nominee directors, while RBI may appoint additional directors to the reconstructed bank’s board.

5) There would be no changes in the rights and liabilities of the reconstructed bank.

6) YES Bank's Additional Tier 1 capital has been written written down completely and permanently, while account holders won’t be entitled to receive any compensation. YES Bank Crisis: Private Bank Assures Depositors That Their Money Is Safe, Says 'Solution Being Worked Upon for Revival'. 

7) The remuneration and terms of service of all employees of Yes Bank will continue to remain the same as earlier.

8) Apart from all these, there will no changes in the offices or branch network of the reconstructed bank.

9) RBI added that the board can discontinue the services of key managerial personnel.

It is to be known that Reserve Bank of India put YES Bank under a moratorium and capped deposit withdrawals at Rs 50,000 per account for a month for customers. Following this, panic grew among the depositors in the fifth largest privat sector bank, who complained that neither the ATMs, net banking or mobile banking was working.

(The above story first appeared on LatestLY on Mar 06, 2020 07:42 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).