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# RBI fines Yes Bank ₹91 lakh over minimum-balance charges and misuse of internal accounts
- URL: https://www.theglobalbanker.com/rbi-fines-yes-bank-91-lakh-over-minimum-balance-charges-and-misuse-of-internal-accounts/
- Published: 2024-05-27T16:00:00.000Z
- Updated: 2026-09-29T15:42:14.000Z
- Description: The Reserve Bank of India penalised Yes Bank for levying charges on savings accounts with insufficient or zero balance and for operating internal accounts in customers' names for unauthorised purposes.
- Author: TGB Editorial Team
- Tags: Regulations, Asia-Pacific, #archive

The Reserve Bank of India (RBI) said on 27 May 2024 that it had imposed a monetary penalty of ₹91 lakh on Yes Bank for non-compliance with certain RBI directions on ‘Customer Service in Banks’ and ‘Un-authorized Operation of Internal/Office Accounts’. The penalty was imposed by an order dated 17 May 2024.

According to the RBI, the bank had levied charges for non-maintenance of minimum balance in certain savings accounts that had insufficient or zero balance. It had also opened and operated certain internal accounts in the name of its customers for unauthorised purposes such as parking funds and routing customer transactions.

#### FINDINGS FROM 2022 INSPECTION

The findings stemmed from the RBI's Statutory Inspection for Supervisory Evaluation (ISE 2022) of the bank, conducted with reference to its financial position as of 31 March 2022\. The central bank said it issued a show-cause notice to Yes Bank and, after considering the bank's reply, oral submissions made during a personal hearing and additional submissions, found that the charges were sustained and warranted a monetary penalty.

The penalty was imposed under section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949\. The RBI said the action was based on deficiencies in regulatory compliance and was not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, and that it was without prejudice to any other action it may initiate against the bank.

On the same day, the RBI announced a separate penalty of ₹1 crore on ICICI Bank for non-compliance with directions on ‘Loans and Advances – Statutory and Other Restrictions’, also arising from an inspection with reference to the bank's financial position as of 31 March 2022.