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Yes Bank employees' jobs secured for at least a year

The Reserve Bank of India (RBI) said that the jobs and salaries of Yes Bank's employees are secured for at least a year

twitter-logoManali | March 6, 2020 | Updated 18:15 IST
Yes Bank employees' jobs secured for at least a year
The Reserve Bank of India (RBI) unveiled a revival plan for Yes Bank on Friday

The RBI which unveiled its revival plan for cash-starved Yes Bank on Friday allayed fears of the private sector lender's employees assuring them that their jobs and salaries are secured for at least a year.

"All the employees of the Reconstructed bank shall continue in its service with the same remuneration and on the same terms and conditions of service (T&C), including terms of determination of service and retirement, as were applicable to such employees immediately before the Appointed date, at least for a period of one year," the central bank said in a statement.

"Board of Directors of the Reconstructed Bank will, however, have the freedom to discontinue the services of the Key Managerial Personnel (KMPs) at any point of time after following the due procedure," it added.

Also Read: YES Bank Crisis Live Updates: RBI announces restructure plan, Sitharaman seeks report, SBI expresses interest

The apex bank said that State Bank of India has expressed interest to invest in the troubled bank and participate in the reconstruction scheme. It said that the investor bank or SBI will invest in the equity of Yes Bank to the extent that it holds 49 per cent shareholding post the infusion.

The bank further said the restructuring scheme will come into effect within the period of moratorium so that the depositors do not have to face any problems.

The RBI has also invited suggestions and comments from the public including banks, shareholders, depositors and creditors on the draft scheme. The apex bank has also sent the draft scheme to Yes Bank and the SBI for their comments.

Also Read:YES Bank said 'Yes' to all bad boys of Indian banking

Meanwhile, Finance Minister Nirmala Sitharaman also stated in a press conference held on Friday that the government and RBI are closely monitoring the ongoing situation at Yes Bank and assured that the government will not let any institution collapse.

The RBI on Thursday evening imposed a moratorium on YES Bank, superseded its board, and imposed a withdrawal limit of Rs 50,000. The central bank said it was "satisfied that in order to protect the interest of the depositors and in public interest, it is necessary to issue certain directions to YES Bank".

Also Read:Yes Bank customers unable to withdraw cash at ATMs or make online transfer

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