In its meeting on Friday, the Cabinet approved Reserve Bank of India's draft reconstruction scheme for the troubled Yes Bank. Talking to media after the Cabinet, Finance Minister Nirmala Sitharaman said that moratorium on Yes Bank will be lifted within three days of notification of the reconstruction scheme, and a new board will be constituted within seven days, with two directors from SBI.
"SBI will have a lock-in period of three years for 26 per cent for shares. Private investors are also being brought in. They will also have a lock-in period of three years, but it will be for 75 per cent of investment they bring," said the Finance Minister.
RBI has stated in its revival plan that State Bank of India (SBI) would hold 49 per cent stake in the troubled bank after its infusion. The bank would not become a part of SBI but would operate as a separate board-run entity. On Thursday, SBI promised to infuse Rs 7,250 crore in Yes Bank.
Commerce Minister announced Remission of Duties and Taxes on Exported Products scheme for importers, which will follow the protocols set by the World Trade Organisation. This scheme will be provided to the people as a transferable digital script under Digital India framework to minimise human intervention, Goyal said.
The Cabinet also approved 4 per cent hike in Dearness Allowance (DA) for central government employees.
Union ministers Nirmala Sitharaman, Piyush Goyal and Prakash Javadekar will brief the media on the outcome of the Cabinet meet at 3:30 pm on Friday. The Cabinet meet, which happened today, was chaired by Prime Minister Narendra Modi. The press conference comes amid multiple crises including the coronavirus pandemic and reconstruction of Yes Bank.
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4:12 PM: We are working closely with RBI and will take measures, where necessary, says FM Sitharaman.
4:12 PM: Global markets had severe volatality and we are consciously monitoring them, says the FM on impact of coronavirus.
4:08 PM: Concerned departments and state governments have been continuously monitoring coronavirus and ensuring that effective timely steps are being taken to take care of the Indian interests, says the FM.
4:06 PM: This scheme will be provided to the people as a transferable digital script under Digital India framework to minimise human intervention, says Piyush Goyal.
4:04 PM: This scheme adheres to WTO provisions on export subsidies and refunds, as mentioned in the Union Budget, says Piyush Goyal.
4:02 PM: Remission of Duties and Taxes on Exported Products scheme approved by Cabinet, says Commerce Minister Piyush Goyal.
4:00 PM: Moratorium on Yes Bank will be lifted within three days of notification of the reconstruction scheme, says the FM. Within seven days, new board will be constituted, with two directors from SBI, she adds
3:58 PM: "SBI will have a lock-in period of three years for 26 per cent for shares. Private investors are also being brought in. They will also have a lock-in period of three years, but it will be for 75 per cent of investment they bring," says FM Sitharaman.
3:55 PM: Key features of the Yes Bank revival plan will be revealed once the official notification comes, says the FM, adding that authorised capital has been raised from Rs 1,100 crore to Rs 6,200 crore to accomodate immediate and subsequent raising of capital requirements.
3:51 PM: Cabinet has approved reconstruction scheme for Yes Bank as proposed by RBI, says Finance Minister Nirmala Sitharaman. The decision to provide a recinstruction scheme keeps at its core a protection of depositors' interest, providing stability to Yes Bank, and keeping a stable financial environment, banking system, she further says.
3:49 PM: Under a World Bank project, upgradation of 780km of national highways and maintenance will be undertaken, says Javadekar. It will be a green highway project, he further says.
3:46 PM: 30 urea fatories will get fixed cost at a rate of Rs 350 per metric tonne, says Javadekar. This will help increase urea production in India and reduce dependency on imports, he further says.
3:45 PM: Increase in copra MSP will help with market stabilisation, says Javadekar.
3:42 PM: MSP for copra increased; to benefit 30 lakh farmers, says Javadekar.
3:41 PM: 4% dearness allowance hike for central government allowance, says Javadekar.
3:40 PM: Important decisions on Yes Bank and export taken in Cabinet, says Union Minister Prakash Javadekar.
3:32 PM: Watch the press briefing on Cabiney decisions live here:
📡LIVE at 3:30 PM— PIB India (@PIB_India) March 13, 2020
Cabinet Briefing by Union Ministers @PrakashJavdekar@nsitharaman and @PiyushGoyal at #PIB Conference Hall Shastri Bhawan, #NewDelhi
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3:30 PM: The press briefing is about to start.
3:22 PM: Key among the agenda for today's Cabinet meeting would be approval for RBI's reconstruction scheme for Yes Bank.
3:10 PM: Union ministers Nirmala Sitharaman, Piyush Goyal and Prakash Javadekar will brief the media.
3:09 PM: The press briefing on Cabinet decisions taken today is scheduled to start from 3:30 PM.