YES Bank has been issued a monetary penalty of Rs. 31.80 Lakh by the Reserve Bank of India. This action follows the bank’s failure to implement a mandatory system for using KYC Identifiers provided by the Central KYC Records Registry. The requirement is essential for establishing account-based relationships with customers, ensuring standardized identity verification processes are maintained across the institution’s operations.
Details of the Monetary Penalty
On May 8, 2026, YES Bank received formal communication regarding a penalty imposed by the regulatory authority. The fine, amounting to Rs. 31.80 Lakh, was levied due to a specific procedural oversight regarding customer onboarding protocols.
Compliance and KYC Protocols
The regulatory review identified that the bank failed to integrate the KYC Identifier system issued by the Central KYC Records Registry. This system is a critical component of the regulatory framework designed to streamline the verification of customer identities when establishing new account relationships. The bank’s failure to incorporate this digital verification standard led to the enforcement action under the Banking Regulation Act, 1949.
Operational Impact
While the financial impact of the penalty is fixed at Rs. 31.80 Lakh, the development highlights the ongoing emphasis on digital infrastructure compliance within the banking sector. The bank is expected to align its onboarding systems to ensure full compliance with the mandated registry protocols moving forward.
Source: BSE
