RBI imposes Rs 6 cr penalty on Yes Bank

The Reserve Bank today said it has imposed a penalty of Rs 6 crore on Yes Bank for non-compliance of norms related to classification of bad loans and delayed reporting of cyber attack on ATMs.
The central bank has also imposed a penalty of Rs 2 crore on IDFC Bank for contravention of regulatory restrictions pertaining to loans and advances.
Both the penalties were imposed yesterday, the RBI said in separate statements.
Regarding Yes Bank, the RBI said it has imposed "a monetary penalty of Rs 60 million" on Yes Bank for non- compliance with the directions on Income Recognition Asset Classification (IRAC) norms and delayed reporting of information security incident involving ATMs of the bank".

This action on Yes Bank is "based on deficiencies" in regulatory compliance and "is not intended" to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
Giving details, the RBI said the statutory inspection of the bank with reference to its financial position as on March 31, 2016 revealed, inter alia, violations of various regulations issued by RBI in the assessment of Non-performing Assets (NPAs).

"A cyber-security incident involving ATMs of the bank was also not reported by the bank within the prescribed timeframe," it said.
After considering the bank's replies, oral submissions made in the personal hearings, as also the additional information and documents furnished, RBI said it "came to the conclusion" that the charges of non-compliance were substantiated and warranted imposition of monetary penalty.

As regards IDFC Bank, the RBI said the status report of the bank based on its financial position as on December 31, 2016, revealed non-adherence with certain directions pertaining to sanction/renewal of loans and advances.
After considering the IDFC Bank's reply and oral submissions made in the personal hearing, "RBI came to the conclusion that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty", the central bank said.