"The rapidly deteriorating financial position of the Yes Bank relating to liquidity, capital and other critical parameters, and the absence of any credible plan for infusion of capital has necessitated Reserve Bank of India to take immediate action in public interest and particularly in the interest of the depositors. Accordingly, Yes Bank was placed under an order of moratorium on 5 March 2020 which will be effective upto 3 April 2020," RBI said in a release.

RBI said that State Bank of India has expressed its willingness to make investment in Yes Bank and participate in its reconstruction scheme.

As per the draft scheme, the authorised capital shall stand altered to Rs 5000 crore only and number of equity shares will stand altered to 2400 crore of Rs 2 each aggregating to Rs 4800 crore. The Investor bank shall agree to invest in the equity of the reconstructed bank to the extent that post infusion it holds 49% shareholding in the reconstructed bank at a price not less than Rs 10 (face value of Rs 2 and premium of Rs 8). The investor bank shall not reduce its holding below 26% before completion of three years from the date of infusion of the capital.

The investor bank shall have two nominee directors appointed on the board of the reconstructed bank. RBI may appoint additional directors in exercise of the powers conferred by sub-section (1) of Section 36AB of the Banking Regulation Act, 1949.

It will be open to the board of directors of Yes Bank to co-opt more directors to it, so however that the total membership in the board, excluding the additional directors appointed by RBI under section 36AB of the Act, shall not exceed the maximum prescribed by the Articles of Association.

The appointment of the directors as above shall have effect, notwithstanding non-fulfilment of requirements as to minimum shareholding, qualification, experience or any other condition precedent, for being a director of the Yes Bank.

The members of the board so appointed shall continue in office for a period of one year, or until an alternate board is constituted by Yes Bank through the normal procedure laid down in its Memorandum and Articles of Association, whichever is later.

Any defect in the constitution or any vacancy in the board shall not invalidate any meetings conducted by the board or any decision taken by it.

All the deposits with and liabilities of the reconstructed bank, except as provided in the scheme, and the rights, liabilities and obligations of its creditors, will continue in the same manner and with the same terms and conditions, completely unaffected by the scheme.

The instruments qualifying as Additional Tier 1 capital, issued by the Yes Bank under Basel III framework, shall stand written down permanently, in full, with effect from the appointed date. This is in conformity with the extant regulations issued by RBI based on the Basel framework.

No accountholder shall be entitled to get any compensation from the reconstructed bank on account of the changes occurred in the reconstructed bank by virtue of the scheme.

Any cause of action accrued, suit, appeal or other proceeding of whatever nature pending, and decree or recovery certificate obtained by or against the reconstructed bank, will remain unaffected by the scheme.

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. 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.

The offices and branches of the reconstructed bank shall continue to function in the same manner and at the same places they were functioning prior to the effective date, without in any way being affected by this scheme. It will be open to the reconstructed bank to open new offices and branches or close down existing offices or branches, in accordance with the extant policy of the Reserve Bank and complying with the necessary terms and conditions.

Yes Bank slumped 56.04% to Rs 16.20 on Friday after RBI superseded the board of Yes Bank and imposed a month-long moratorium. RBI also capped Yes Bank depositor's withdrawals at Rs 50,000 per account for a month.

It also appointed former chief financial officer (CFO) of SBI, Prashant Kumar as the administrator of Yes Bank.