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RBI fines YES Bank Rs 6 cr, IDFC Bank Rs 2 cr over compliance issues

Yes Bank delayed reporting of information security incident involving its ATMs

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BS Web Team/PTI  |  Mumbai 

RBI
RBI

The Reserve Bank of India (RBI) today said it has imposed a monetary penalty of Rs 6 crore on Yes Bank and Rs 2 crore for non-compliance with the apex bank's directions.

Yes Bank delayed reporting of information security incident involving its ATMs and failed to comply with RBI's direction on IRAC norms.

IDFC Bank was penalised for contravention of regulatory restrictions pertaining to loans and advances and non-complain.

The said this action 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.

The status report of the bank based on its financial position as on December 31, 2016, revealed, inter alia, non- adherence with certain directions pertaining to sanction/renewal of loans and advances, the central bank said.

"Based on the status report, a notice was issued to the bank dated August 07, 2017 advising it to show cause as to why penalty should not be imposed on it for non-compliance with directions issued by RBI," it added.

After considering the bank's reply and oral submissions made in the personal hearing, said, "it came to the conclusion that the aforesaid charge of non-compliance with directions was substantiated and warranted imposition of monetary penalty".

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First Published: Tue, October 24 2017. 20:43 IST
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