October 25, 2017

Yes Bank, IDFC fined for non compliance of directions: RBI

Yes Bank, IDFC

The Reserve Bank of India (RBI), on October 25, imposed a fine of Rs 6 crore on Yes Bank and Rs 2 crore on IDFC for failing to comply with its directions.

According to a statement issued by RBI, “Yes Bank delayed reporting a security incident involving its ATMs and failed to comply with the RBI's direction on Income Recognition Asset Classification (IRAC norms), whereas, IDFC Bank was punished for breaching regulatory restrictions related to loans and advances.”

“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,” RBI said.

Adding further, RBI said that a statutory inspection of Yes Bank's financial position revealed violations of various regulations issued by the RBI in the assessment of non-performing assets (NPAs) or bad loans.

A show cause notice was issued to IDFC Bank in August 2017, asking the bank why penalty should not be imposed on it for non compliance with RBI directives.

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