New Delhi, 18 May 2025: Reserve Bank of India (RBI) has slaped monetary penalties on two major banks — Deutsche Bank AG and Yes Bank — for violations of regulatory norms. RBI issued a press release on Friday, stated that these fines were imposed after detailed scrutiny and due consideration of the banks’ responses.
According to RBI, the bank failed to ensure adherence to guidelines related to the KYC process. These guidelines are related to anti-money laundering regulations. Deutsche Bank AG has been fined ₹50 lakh for non-compliance with RBI directions issued under the “Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016.”
Yes Bank, on the other hand, has been penalized ₹29.6 lakh for non-compliance with the RBI’s directions on ‘Customer Service in Banks’. The RBI inspection revealed that the bank had levied charges for non-maintenance of minimum balance in Basic Savings Bank Deposit Accounts, which is against the RBI norms. These accounts are designed to provide basic banking services to customers without the burden of charges.
In this month of May 2025, RBi imposed fine on several other banks including ₹1.66 Lakh Fine on Union Bank of India Over Currency Handling Lapses and SBI, Jana Small Finance Bank for deficiencies in compliance of norms.
RBI stated that these penalties are purely administrative in nature and are intended to ensure compliance with banking regulatory standards. This ensures to maintain trust and safety on banking system among citizens.
