CASH withdrawal restrictions and other moratorium conditions on Yes Bank will be lifted within 3 days of “very soon” to be notified SBI-led bailout plan for the beleaguered lender, Finance Minister Nirmala Sitharaman said on Friday. Meanwhile, private sector lender ICICI Bank has announced to invest Rs 1,000 crore for an equity in excess of 5 per cent in the crisis-ridden bank. HDFC will also infuse Rs 1,000 crore, while Axis Bank will invest up to Rs 600 crore to purchase 60 crore shares in the bank. Uday Kotak-led Kotak Mahindra Bank said it will infuse equity capital of Rs 500 crore into Yes Bank under the RBI’s bailout plan for the crisis-hit lender.
Sitharaman said the Central bank is engaged with other financial institutions for investment as part of the scheme to resurrect Yes Bank under RBI imposed moratorium since March 5.
“Today the Cabinet has approved reconstruction scheme for the Yes Bank as was proposed by the RBI,” she said.
“The decision to provide a reconstruction scheme keeps at its core the protection of depositors’ interest, keeps at its core providing stability to Yes Bank and also keeps at its core keeping a stable financial environment, banking system,” she added.
The Minister said the bank was being monitored for past one year.
She said the State Bank of India (SBI) will invest up to 49 per cent of the equity in Yes Bank and other investors are also being invited. RBI has been engaged in lot of engagements to bring in other investors, she added.
Tax reimbursement scheme for exporters
THE Government approved a scheme for reimbursement of taxes and duties to exporters with a view to give boost to the country's dwindling outbound shipments. A decision in this regard was taken in a Cabinet meeting.
The reimbursement of taxes such as duty on power charges, VAT on fuel in transportation, farm sector, captive power generation, mandi tax, stamp duty and central excise duty on fuel used in transportation would make Indian products competitive in global markets, the Commerce and Industry ministry tweeted. The measures are compliant with WTO norms, it mentioned.
Construction of 780 km Green NH Corridor
THE Union Cabinet has approved construction of 780 km Green National Highway Corridor project with an investment of Rs 7,660 crore in partnership with the World Bank.
In a tweet on Friday, Union Minister Nitin Gadkari said, “The Union Cabinet gives approval to the construction of 780 km Green National Highway Corridor project with an investment of Rs 7660 crore in partnership with the World Bank. #PragatiKaHighway.” “The highway will connect Himachal Pradesh, Rajasthan, Uttar Pradesh and Andhra Pradesh. Besides up-gradation and redevelopment, environment-friendly and sustainable steps will be taken to build the highway,” Gadkari said.
Approves to remove ambiguities in Modified New Pricing Scheme
THE Centre approved the proposal of Department of Fertilisers to remove ambiguities in the Modified New Pricing Scheme -III (NPS-III) for the determination of fixed costs for the urea units. “The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has given its approval to the proposal of Department of Fertilisers to remove ambiguities in the Modified New Pricing Scheme -III (NPS-III) for determination of fixed costs for the urea units,” a press release informed.