Yes Bank news:
The RBI has imposed penalties on ICICI Bank and Yes Bank, amounting to Rs 1 crore and Rs 91 lakh, respectively, for violating regulatory norms.
Yes Bank violated RBI guidelines by imposing charges on accounts with zero balances and by opening and operating internal accounts in customers’ names for unauthorized purposes, such as parking funds and routing transactions. According to RBI norms, banks can charge customers for services only if there is a balance in their accounts. If an account balance falls to zero, the bank must suspend its services. The 2014 guidelines specify that the balance in a savings account should not turn negative solely due to charges for non-maintenance of the minimum balance.
The penalty on ICICI Bank relates to irregularities in the sanctioning of a project loan. The RBI’s supervisory evaluation for FY22, which included a statutory inspection of the banks’ books, uncovered these violations. ICICI Bank was found to have sanctioned term loans to entities to replace budgetary resources for certain projects without conducting due diligence on the projects’ viability and bankability.
The bank also allowed loan repayment/servicing from budgetary resources and approved loans without ensuring they were for specific, monitorable projects.
