RBI Slaps ₹33.60 Lakh Penalty on Yes Bank and Hinduja Housing Finance
Moneylife Digital Team 11 May 2026
Reserve Bank of India (RBI) has imposed penalties totalling ₹33.60 lakh on Yes Bank Ltd and Hinduja Housing Finance Ltd, a housing finance company (HFC), for non-compliance with directions issued by the banking regulator. The highest penalty of ₹31.80 lakh was imposed on Yes Bank. Hinduja Housing Finance was penalised ₹1.80 lakh.
 
Yes Bank has been penalised for non-compliance with RBI directions on know-your-customer (KYC) norms.
 
RBI’s statutory inspection revealed that Yes Bank had failed to implement a system for using the KYC identifier assigned by the Central KYC Records Registry (CKYCR) while establishing account-based relationships with customers.
 
Hinduja Housing Finance has been fined for non-compliance with RBI directions on governance. The HFC failed to obtain prior written approval from RBI before implementing changes in management that resulted in more than 30% of its directors, excluding independent directors, being replaced.
 
In both cases, RBI says penalties are based on deficiencies in regulatory compliance and are not intended to pronounce on the validity of any transaction or agreement they entered into with their customers.
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