RBI Penalises Yes Bank ₹31.8 Lakh, Hinduja Housing Finance ₹1.8 Lakh For Regulatory Lapses

The Reserve Bank of India (RBI) on Friday imposed monetary penalties on Yes Bank and Hinduja Housing Finance for separate regulatory lapses, fining the entities ₹31.80 lakh and ₹1.80 lakh, respectively.

Yes Bank was penalised for non-compliance with the RBI's Know Your Customer (KYC) directions. The central bank said a statutory inspection conducted with reference to the bank's financial position as of March 31, 2025, found that the lender had failed to put in place a system for using the KYC Identifier assigned by the Central KYC Records Registry while establishing account-based relationships with customers.

Separately, Hinduja Housing Finance was fined for non-compliance with RBI's governance directions. The central bank said the company had effected a change in management that resulted in a change of more than 30% of its directors, excluding independent directors, without obtaining prior written permission from RBI.

The RBI said the penalties followed supervisory findings of non-compliance, after the entities were issued show-cause notices and given an opportunity to respond, including through personal hearings.

The central bank clarified that the action was based on deficiencies in regulatory compliance, and in Yes Bank's case, statutory compliance as well, and did not amount to a pronouncement on the validity of any transaction or agreement entered into by the entities with their customers.

Click here for the press release related to Hinduja Housing Finance Limited