With reference to the reconstruction scheme for Yes Bank consider following statements As proposed b...........

Economic Affairs Types of Banks and Banking

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With reference to the reconstruction scheme for Yes Bank, consider following statements

As proposed by the Reserve Bank of India, under which the State Bank of India (SBI) will acquire 49% stake in the ailing bank.
There will be a three year lock-in period for all the investors but in case of SBI, the lock-in period would be only for 26 percent of the shareholding.

Which of the statements given above is/are correct?

1 only

2 only

Both

None

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Explanation:

The Union Cabinet has approved a reconstruction scheme for Yes Bank as proposed by the Reserve Bank of India. State Bank of India will invest 49 percent equity in Yes Bank with other investors also being invited. The scheme has been approved with the objective of protecting the interest of depositors and providing stability to Yes Bank as well as to the entire financial system.There will be a three year lock-in period for all the investors but in case of SBI, the lock-in period would be only for 26 percent of the shareholding. Authorised capital of the lender has been raised from 1100 crore rupees to 6200 crore rupees to accommodate immediate and subsequent raising of capital requirements.