Legality of Writing Down AT-1 Bonds Under the Yes Bank Reconstruction Scheme and RBI Regulations

sketch of the Supreme Court of India
Case
YES BANK LIMITED v. AXIS TRUSTEE SERVICES LIMITED (Supreme Court of India, 15-10-2026)
Law
Banking Regulation Act.

Highlights of the Judgment:

  • Interpretation of the RBI Master Circular on Basel III Capital Regulations regarding the write-down of Additional Tier 1 (AT-1) bonds.
  • Examination of the scope and limits of an Administrator's statutory powers under Section 36ACA of the Banking Regulation Act, 1949.
  • Analysis of the legal effect of omitting provisions from a finalized bank reconstruction scheme under Section 45.
  • Scrutiny of regulatory compliance and investor protection concerning the high-risk marketing of AT-1 instruments to retail investors.