RBI took huge action against Yes Bank and ICICI Bank, fined crores

According to the RBI, two of the country's largest banks have violated central bank regulations, due to which the RBI has imposed a penalty of crores on two of the country's private banks. A fine of Rs 91 lakh and Rs 1 crore has been imposed on the banks. The impact of RBI's action can also be seen on bank shares on Tuesday.

A fine of crores of rupees was imposed

The Reserve Bank of India has taken strict action against two major private sector banks. RBI has taken action against Yes Bank and ICICI Bank and fined crores. The banking regulator says Yes Bank and ICICI Bank are violating several central bank regulations. Because of this, a fine of Rs 91 lakh has been imposed on Yes Bank and Rs 1 crore on ICICI Bank.

Due to this, the penalty was imposed

The RBI had recently informed that both the banks were not following several guidelines. According to the RBI, Yes Bank was accused of violating guidelines related to customer service and internal and office accounts. Many such cases have come before the RBI, wherein the bank has levied charges from several accounts due to insufficient balance. Also illegal activities were taking place from internal and office accounts.

The RBI in its assessment found that this was done several times by Yes Bank during the year 2022. The bank opened and operated certain internal accounts in the name of its customers for illegal purposes such as fund parking and routing of customer transactions. A penalty of Rs 91 lakh has been imposed on the bank for complying with all these instructions.

This allegation on ICICI Bank

Similarly, ICICI Bank has been found guilty of violating instructions regarding loans and advances. For this the bank will have to pay a penalty of Rs 1 crore. The bank approved many loans based on incomplete due diligence, which exposed the bank to financial risk. An RBI probe has revealed flaws in the bank's loan approval process. Banks sanctioned loans without detailed analysis of feasibility and loan repayment capacity of many projects.

What was the impact on the shares?

On Monday, Yes Bank shares traded on the BSE at Rs. 0.010 with an increase of Rs. Closed on 23.04. At the same time, ICICI Bank's share rose to Rs. 2.10 down to Rs. closed at 1,129.15.