The Reserve Bank of India has imposed a monetary penalty of INR 31.80 lakh on YES Bank Limited for failing to comply with directions on the use of the Central KYC Records Registry, in an order dated 27 April 2026 and announced on 8 May 2026. The fine equates to approximately USD 34,000.
The action was taken under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, the RBI said in its press release. The penalty follows a statutory inspection of the lender with reference to its financial position as of 31 March 2025.
CENTRAL KYC IDENTIFIER AT ISSUE
The regulator found that YES Bank had not put in place a system for using the KYC Identifier assigned by the Central KYC Records Registry, or CKYCR, when opening account-based customer relationships.
The RBI said the action is based on deficiencies in statutory and regulatory compliance and is not intended to pronounce on the validity of any transaction or agreement entered into by the bank with its customers. It added that the penalty is without prejudice to any other action it may initiate against the bank.
FOLLOWS STATUTORY INSPECTION
The action stems from the RBI's supervisory review of YES Bank based on its financial position at end-March 2025. Based on the supervisory findings, the RBI issued a notice asking the bank to show cause why a penalty should not be imposed; after considering its reply and oral submissions at the personal hearing, it found the charge sustained, warranting a monetary penalty.
On the same day the RBI also announced an INR 1.80 lakh penalty on Hinduja Housing Finance for failing to take its prior written permission for a change in management that resulted in a change of more than 30% of its directors, excluding independent directors.
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