Yes Bank appointed Harish Sehgal as interim Chief Vigilance Officer (CVO) effective September 16, 2026. The designation follows the resignation of Mr. Binu Soman from the CVO role. Sehgal will continue to serve as the Head of Anti-Money Laundering (AML) and Principal Officer while assuming interim vigilance duties.

The bank designated Sehgal as Senior Management Personnel (SMP) under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. He reports directly to the Managing Director and CEO of the bank. The appointment is interim in nature and will remain valid until a new permanent CVO is appointed.

Profile and Experience

Sehgal brings extensive experience in banking compliance and risk management to the role. His profile highlights expertise in AML frameworks, fraud risk, investigations, sanctions compliance, and transaction monitoring. He has demonstrated capability in strengthening governance structures and managing regulatory inspections.

Prior to joining Yes Bank, Sehgal served as a Vigilance Officer with HDFC Bank for approximately two years. During his 15-year tenure at Yes Bank, he built a portfolio across AML and the Retail Investigations and Control Unit (RICU). He spent nearly 11 years within RIC, supporting Retail Asset and SME businesses, and served as the National RCU Head.

Regulatory Disclosure

The disclosure aligns with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/1/3762/2026 dated January 30, 2026. Sanjay Madhav Abhyankar, Company Secretary, signed the intimation on September 16, 2026. The bank hosted the details on its website pursuant to listing regulations.

Citi has flagged a structural shift in India's UPI payments framework, with the government introducing fee rails for larger merchant payments, effectively ending the zero-MDR-for-all regime that had governed the ecosystem.

Key changes under the new UPI MDR framework

Under the revised structure, peer-to-peer (P2P) transfers and approximately 96% of peer-to-merchant (P2M) volumes, covering transactions at or below ₹2,000, remain free of charge. Transactions above ₹2,000 will attract a merchant discount rate (MDR) of 0.4%, capped at ₹300 per transaction. The distributed fee is intended to fund network expansion rather than function as a government tax.

The table below summarises the key parameters of the new MDR structure:

Revenue and earnings impact

Citi estimates the banking ecosystem could gain ₹16,000-17,000 crore in annual revenue as a result of this change. At an individual bank level, Yes Bank is estimated to see a 6-12% boost to its profit before tax (PBT), reflecting its exposure to UPI-based merchant payment flows.

What the numbers show

The scope of the fee change is deliberately narrow: with approximately 96% of P2M volumes falling at or below the ₹2,000 threshold, the MDR applies only to a small share of total UPI transactions by volume. However, higher-value transactions above ₹2,000 tend to carry larger ticket sizes, which means the aggregate revenue potential for the banking ecosystem is material, as reflected in Citi's ₹16,000-17,000 crore annual revenue estimate. The framing of the fee as a network funding mechanism, rather than a fiscal measure, signals that the policy intent is to sustain infrastructure investment in the UPI ecosystem.