This action is based on deficiencies in regulatory compliance
FinTech BizNews Service
Mumbai, 8 May 2026: The RBI has imposed Monetary Penalty On Yes Bank and Hinduja HFC.The action is based on deficiencies in statutory and regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by these entities with their respective customers.
The Reserve Bank of India (RBI) has, by an order dated April 27, 2026, imposed a monetary penalty of Rs31.80 lakh (Rupees Thirty One Lakh Eighty Thousand only) on Yes Bank Limited (the bank) for non-compliance with certain provisions of directions issued by RBI on 'Know Your Customer'. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949.
The Statutory Inspection for Supervisory Evaluation of the bank was conducted by RBI with reference to its financial position as on March 31, 2025. Based on supervisory findings of non-compliance with the provisions of RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said RBI directions.
After considering the bank's reply to the notice and oral submissions made during the personal hearing, RBI found that the following charge against the bank was sustained, warranting imposition of monetary penalty:
The bank failed to put in place a system of using KYC Identifier assigned by Central KYC Records Registry for the purpose of establishing an account-based relationship with customers.
The action is based on deficiencies in statutory and regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
The Reserve Bank of India (RBI) has, by an order dated April 27, 2026, imposed a monetary penalty of Rs1.80 lakh (Rupees One lakh eighty thousand only) on Hinduja Housing Finance Limited (the company) for non-compliance with certain directions issued by RBI, relating to ‘Governance’. This penalty has been imposed in exercise of powers conferred on RBI under Section 52A of the National Housing Bank Act, 1987.
The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2025. Based on the supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for failure to comply with the said directions.
After considering the company’s reply to the notice and oral submissions made during the personal hearing, RBI found, inter alia, that the following charge against the company was sustained, warranting imposition of monetary penalty:
The company had failed to take prior written permission of the RBI for effecting change in management, resulting in change of more than 30 per cent of its directors, excluding independent directors.
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 company with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the company.
