Troubled lender Yes Bank on Monday said that it will resume full banking services from 6 pm on Wednesday. The Reserve Bank of India confirmed the same, and said the the bank’s resolution framework was under way as planned.

The Reserve Bank of India had on March 5 taken control of Yes Bank, after the lender – which is laden with bad debts – failed to raise the capital it needs to stay above mandated regulatory requirements. Placing Yes Bank under a 30-day moratorium, the central bank had imposed a limit of Rs 50,000 on withdrawals to protect depositors.

Advertisement

“Visit any of our 1,132 branches from March 19, 2020, post commencement of banking hours to experience our suite of services,” Yes Bank tweeted on Monday. “You will also be able to access all our digital services and platforms.”

The bank’s shares rose 45.2% during the day to Rs 37.10 on the BSE.

RBI Governor Shaktikanta Das assured of additional liquidity if need arose. “I would like to convey to the depositors of Yes Bank...that their money is completely safe and there is nothing to worry,” Das said, according to the Hindustan Times. “There is no reason for any undue worry.”

Advertisement

Authorities have opened investigations into Yes Bank’s lending practices that led to its failure. Its founder Rana Kapoor has been detained and a case of money laundering was registered against him. On Monday, Kapoor’s custody with the Enforcement Directorate was extended till March 20, PTI reported. He told the court he had been suffering with asthma and depression.

Kapoor and his family members are accused of laundering proceeds of crime worth Rs 4,300 crore by allegedly receiving kickbacks for extending big loans through Yes Bank, which later turned non-performing.

On Saturday, the government had notified the Yes Bank Limited Reconstruction Scheme, 2020. Under the scheme, State Bank of India the country’s largest lender will invest for 49% equity in Yes Bank and other investors are also being invited. The Union Cabinet had approved the reconstruction plan for Yes Bank on Friday.

Advertisement

There will be a three-year lock-in period for all the investors. However, the lock-in period for SBI would be only for the 26% of the shareholding.

The moratorium restricting withdrawal to Rs 50,000 per account will also be lifted by 6 pm on Wednesday.

On March 10, Yes Bank had partially restored its NEFT and Immediate Payment Service, or IMPS. IMPS is an instant payment inter-bank electronic funds transfer system. It offers inter-bank electronic fund transfer service through mobile phones 365 days a year.