RBI imposed Rs 29.6 Lakh Penalty on Yes Bank for Disclosure Lapses in Financial Statements
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The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹29,60,000 on Yes Bank Limited for failing to comply with regulatory directions related to the presentation and disclosure of financial statements. The action was taken under the provisions of the Banking Regulation Act, 1949.
According to an official release from the central bank, the penalty was imposed by an order dated May 16, 2025, using powers granted under Section 47A(1)(c) read with Section 46(4)(i) of the Act.
Statutory Inspection Reveals Non-Compliance
The penalty follows RBI’s Statutory Inspection for Supervisory Evaluation (ISE 2024), which reviewed Yes Bank’s operations based on its financial position as of March 31, 2024. During this process, the RBI found that the bank had failed to disclose complete and accurate information related to customer complaints in its Annual Financial Statements for the year 2023–24.
As a result, the bank was served with a show-cause notice, asking it to explain why a monetary penalty should not be imposed for the violation.
Yes Bank’s Response Considered
RBI stated that it had carefully considered the bank’s written response, additional documents, and oral submissions made during a personal hearing before finalizing its decision. The regulator concluded that the bank’s explanation was unsatisfactory and that the violation was sufficient to warrant a financial penalty.
RBI’s Clarification
The RBI clarified that the penalty is related solely to a regulatory compliance failure and should not be seen as a judgment on the validity of any customer-related transactions or agreements entered into by the bank.
Furthermore, the central bank noted that the imposition of the penalty is without prejudice to any further actions it may initiate against the bank in the future.
This action reflects the RBI’s ongoing efforts to ensure transparency, accountability, and adherence to regulatory standards in India’s banking sector.
