RBI penalises Yes Bank for KYC Identifier system failure
Yes Bank must fix account-opening controls that failed to use the Central KYC Records Registry KYC Identifier
Change
On April 27, 2026, RBI imposed an INR 31.80 lakh penalty on Yes Bank Limited for failing to put in place a system to use the Central KYC Records Registry KYC Identifier when establishing account-based customer relationships.
Why it matters
The penalty shows the first operational object is not the KYC policy itself, but the account-opening system control that should use the Central KYC Records Registry identifier. Until that control is implemented, onboarding can remain non-compliant even if customer due-diligence procedures exist elsewhere.
Implications
- — Yes Bank KYC and onboarding operations teams must implement use of the Central KYC Records Registry KYC Identifier in account-based relationship setup ? failure has already triggered RBI monetary penalty action.
- — Yes Bank compliance leadership must evidence remediation of the cited system-control failure ? unresolved remediation leaves the bank exposed to further RBI action.
Who is affected
- — Yes Bank KYC and onboarding operations teams
- — Yes Bank compliance leadership