On 5 March 2020, the Reserve Bank of India
("RBI") imposed a moratorium on Yes Bank
following unsuccessful attempts to raise additional capital to
cover provisions for non-performing assets and a deterioration of
its financial position. This was against the backdrop of the
downgrading of Yes Bank's credit rating and concerns over its
corporate governance. The RBI has taken over Yes Bank's board
and imposed limits on withdrawals to protect the interests of
depositors until 3 April 2020. This was followed by a draft scheme
of reconstruction published by the RBI on 6 March 2020 for
rehabilitation of Yes Bank ("RBI
Scheme").
The RBI Scheme is likely to be amended and a revised scheme is
expected to be published imminently. At the time of publication of
this client alert, it has been reported that Indian cabinet has
approved a revised version of the RBI Scheme. These revisions may
affect the percentage of equity to be held by the government
entities participating, the
