RBI fines Yes Bank $1 million for ATM breach
Written by Anthony Strzalek
The Reserve Bank of India (RBI) has imposed a $1 million fine on Yes Bank for not reporting a cyber security incident involving the bank’s ATMs within the required timeframe.
The RBI issued the fine “for non-compliance with the directions issued by RBI on Income Recognition Asset Classification (IRAC) norms and delayed reporting of information security incident involving ATMs of the bank”.
An inspection revealed that Yes Bank had violated a number of regulations issued by RBI in the assessment of Non-performing Assets (NPAs). A cyber-security incident involving ATMs of the bank was also not reported by the bank within the prescribed timeframe.
In a statement the RBI said: “After considering the bank’s replies, oral submissions made in the personal hearings, as also the additional information and documents furnished, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of the monetary penalty.”