RBI Penalizes Yes Bank ₹31.80 Lakh Over KYC Identifier Compliance Failures
Why it matters
Following a Statutory Inspection for Supervisory Evaluation based on its March 2025 financial position, Yes Bank was found in breach of 'Know Your Customer' (KYC) directions. Specifically, the bank failed to utilize the KYC Identifier assigned by the Central KYC Records Registry (CKYCRR) when opening new accounts. This oversight led the regulator to issue a show-cause notice and a subsequent penalty order dated April 27, 2026.
The RBI exercised its powers under Section 47A(1)(c) of the Banking Regulation Act, 1949, to impose the ₹31.80 lakh fine. This enforcement action focuses strictly on regulatory non-compliance and does not impact the validity of any existing contracts or customer transactions. The bank’s written and oral explanations were considered before the final sustained charge regarding the CKYC identifier was established.
Glossary
CKYCRR (Central KYC Records Registry): A central repository that stores digital KYC records, allowing financial institutions to verify customer data without redundant documentation across different entities.
NaukriSync Exam Angle
Banking & Finance. This case involves the legal application of Section 47A(1)(c) of the Banking Regulation Act, 1949. Questions may focus on the specific role of the Central KYC Records Registry (CKYCRR) in digital onboarding or the regulatory powers the RBI wields to enforce compliance in private sector banks.