RBI slaps Rs 11 lakh fine on Yes Bank for violating money transfer norms

Yes Bank Friday said the Reserve Bank of India has imposed a penalty of Rs 11.25 lakh on it for violating money transfer norms.

"(The) Reserve Bank of India (RBI) vide its speaking order dates April 22, 2019, imposed a penalty of Rs 11,25,000 under the Payment and Settlement Systems Act, 2007," Yes bank said in a regulatory filing.

The RBI has identified certain violations of its circular of 2011 on Domestic Money Transfer - Relaxations and master directions issued in October 2017 on issuance and operation of prepaid payment instruments in connection with certain product features for an open loop prepaid card (co-branded) previously issued by the bank, Yes Bank said.

The bank said it had launched this product as a pilot programme from September 13, 2017, and, later, discontinued this product with effect from March 14, 2018, it said.

Shares of Yes Bank closed 1.04 per cent up at Rs 175.60 apiece on the BSE.