The Reserve Bank of India (RBI) on Tuesday slapped Rs 6 crore penalty on Yes Bank for breaching its rules on classifying non-performing assets and failing to report a security incident involving its ATMs on time.
The bank violated the Income Recognition Asset Classification (IRAC) norms on dealing with assessment of bad loans as of March-end 2016. Yes Bank was one of three private sector lenders which had reported a sharp divergence between their asset quality classification and provisioning for 2015-16, and what the RBI deemed necessary.
Also, Yes Bank failed to report a cyber-security attack on its ATM network within the prescribed timeframe.
Yes Bank is India’s fifth largest private sector Bank with a pan India presence across all 29 states and 7 Union Territories of India.
