Today, On 22nd January, The Supreme Court referred pleas by the RBI and others concerning the write-off of Yes Bank’s Additional Tier-1 (AT-1) bonds to a different bench. AT-1 bonds are perpetual, high-risk instruments issued by banks to bolster their capital base, offering higher interest rates. The Reserve Bank of India has the authority to cancel these bonds in cases where the issuing bank faces financial distress.
