YES Bank Fined for KYC Non-Compliance by RBI
The Reserve Bank of India has imposed significant fines on YES Bank and Hinduja Housing Finance for non-compliance with regulatory standards. YES Bank was penalized Rs 31.80 lakh for failing to implement necessary KYC measures, while Hinduja Housing Finance faced a Rs 1.8 lakh fine for governance-related issues. These actions highlight the RBI's commitment to enforcing compliance in the banking sector. Read on to learn more about the implications of these penalties.
May 9, 2026, 13:38 IST
Regulatory Action Against YES Bank
Mumbai: The Reserve Bank of India (RBI) has levied a fine of Rs 31.80 lakh on YES Bank due to its failure to adhere to specific 'Know Your Customer' (KYC) regulations. The RBI noted that the bank did not implement a system to utilize the KYC Identifier provided by the Central KYC Records Registry, which is essential for establishing account relationships with clients. This penalty follows a statutory inspection conducted by the RBI to evaluate the bank's financial status as of March 31, 2025.
Additionally, Hinduja Housing Finance Ltd has been fined Rs 1.8 lakh for not complying with certain governance directives issued by the RBI.