RBI fines Yes Bank and IDFC Bank for not complying with norms
While Yes Bank did not report a security breach at ATMs and failed to classify bad loans correctly, IDFC Bank did not follow rules while renewing loans.
The Reserve Bank of India on Tuesday fined Yes Bank Ltd Rs 6 crore and IDFC Bank Ltd Rs 2 crore for violating several norms set by the regulator.
The central bank said it fined Yes Bank for breaching rules on classifying non-performing assets and not reporting a security incident at ATMs on time.
An asset quality review initiated by the central bank in October 2015 had asked banks to identify some loans as non-performing assets and provide for them before March 2016. In an annual report for 2016-’17, the bank said its bad loan classification of Rs 748.9 crore at the end of March 2016 varied from RBI’s, which said it was Rs 4,176 crore, Mint reported.
The RBI penalised IDFC Bank for not following the norms governing sanctioning and renewing of loans and advances. “The status report of the bank based on its financial position as on December 31, 2016, revealed, non-adherence with certain directions pertaining to sanction and renewal of loans and advances,” RBI said.
