The Reserve Bank of India (RBI) has imposed a penalty of Rs 91 lakh on Yes Bank for violating customer service guidelines by charging fees for low balance in savings accounts.
This fine comes after the bank failed to follow the central bank’s instructions on customer service.
Penalty for Non-Compliance with RBI Guidelines
The RBI penalized Yes Bank and ICICI Bank on May 27 for not adhering to regulatory instructions.
Yes Bank was fined Rs 91 lakh for not following RBI’s guidelines on ‘consumer service in banks’ and for the unauthorized operation of internal accounts.
These internal accounts were used for unauthorized purposes such as parking funds and routing customer transactions.
ICICI Bank faced a larger penalty of Rs 1 crore for similar non-compliance.
Unfair Charges and Unauthorized Activities
RBI’s comprehensive assessment during the statutory investigation for supervisory evaluation (ISE 2022) revealed that Yes Bank had charged fees on accounts with insufficient or zero balance.
The bank also operated internal accounts for unauthorized activities.
This practice was in direct violation of the RBI’s instructions, leading to the imposition of the fine.
Customers of Yes Bank should check their accounts for any such charges and be aware of the bank’s practices.
The RBI’s actions highlight the importance of regulatory compliance and protecting consumer rights in the banking sector.
