The Reserve Bank of India (RBI) has summoned Yes Bank executives following a significant fraud incident involving the bank's Multi-Currency Prepaid Forex Cards. This regulatory action comes after the bank reported unauthorized transactions that affected 5,000 customers during the early hours of February 24, 2026.

Regulatory Response to Security Breach

The central bank's decision to summon Yes Bank executives underscores the severity of the forex card fraud incident and highlights regulatory concerns over the bank's security protocols. The RBI's intervention follows the bank's disclosure of fraudulent activities that resulted in substantial unauthorized transactions targeting specific card numbers.

Details of the Fraud Incident

Yes Bank's fraud monitoring system detected unusual activity on Multi-Currency Prepaid Forex Cards issued in partnership with BookMyForex. The unauthorized transactions occurred during a five-hour window, targeting merchants in a Latin American country that does not mandate two-factor authentication for e-commerce transactions.

Bank's Security Response

As an immediate security measure, Yes Bank restricted e-commerce transactions from the specific Latin American country involved in the fraudulent activities. The bank's monitoring systems successfully declined 688 unauthorized transaction attempts, preventing additional losses of approximately USD 0.10 million equivalent.

The bank is actively working with the card network to raise chargebacks, ensuring that impacted customers do not face financial losses from the unauthorized transactions. Yes Bank has implemented comprehensive security measures and continues to monitor the situation closely while collaborating with stakeholders to safeguard customer interests.

Implications for Banking Security

The RBI's summoning of Yes Bank executives reflects the regulator's focus on maintaining robust security standards in the banking sector. This incident highlights the critical importance of advanced fraud detection systems and stringent security protocols, particularly for international payment instruments like multi-currency forex cards.

YES Bank Limited has received an ESG (Environmental, Social, and Governance) score of 80.5 for FY 2024-25, as disclosed in a regulatory filing dated February 24, 2026. The rating was assigned by SES ESG Research Pvt. Ltd., a SEBI-registered ESG Rating Provider under Category II.

Official Regulatory Disclosure

The bank made the disclosure through an official communication to both the National Stock Exchange of India Limited and BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The communication was signed by Company Secretary Sanjay Abhyankar and formally submitted to the exchanges.

Independent ESG Assessment

The ESG rating was conducted independently by SES ESG Research without any engagement from YES Bank. The assessment was based entirely on the bank's public disclosures pertaining to FY 2024-25, demonstrating the importance of transparent sustainability reporting in the banking sector. The bank confirmed that it has not engaged SES ESG for ESG Ratings, ensuring the independence and objectivity of the evaluation.

Comprehensive ESG Framework

The ESG evaluation encompasses multiple dimensions of sustainability performance. The assessment covers environmental management practices, social responsibility initiatives, and governance standards across the bank's operations.

Environmental Performance Highlights

YES Bank has demonstrated significant environmental commitments with several notable achievements:

• Green Building Certifications: YES Bank House holds Platinum certification while Delhi's Okhla office has Gold certification from the Indian Green Building Council (IGBC)
• Net Zero Target: The bank has set an ambitious target to achieve net zero emissions by FY 2030
• Renewable Energy: Approximately 19% of energy consumption comes from renewable sources, showing an increase from FY 2022-23
• Green Financing: Sanctioned debt facilities worth ₹ 7,357.00 crores for renewable energy projects including solar, wind, hybrid and pumped-storage of around 2,210 MW

Social Responsibility Metrics

The bank's social performance includes various workforce and community-focused initiatives:

• Gender Diversity: More than 23% female representation in total employees
• Health and Safety: Achieved ISO 45001:2018 certification for Occupational Health and Safety Management System
• Financial Inclusion: Conducted financial literacy drives across 1,248 YES Bank branches, empowering over 16,000 women
• Priority Sector Compliance: Achieved 100% compliance with Priority Sector Lending (PSL) norms

Governance Standards

The governance assessment covers board composition, audit practices, and compliance frameworks:

• Board Diversity: Two women Independent Directors ensuring gender diversity at board level
• Independent Leadership: Chairman of the Board is an Independent Director
• Audit Quality: Statutory Auditors made no qualifications, reservations, adverse remarks or disclaimers in their report
• Policy Framework: Comprehensive policies covering various aspects of corporate governance and risk management

Rating Methodology and Scope

The ESG assessment follows a comprehensive methodology evaluating over 650 indicators across environmental, social, and governance parameters. The evaluation considers both disclosure quality and actual performance outcomes, providing a holistic view of the bank's sustainability practices.

Regulatory Compliance and Transparency

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, highlighting the bank's commitment to transparency in ESG reporting. The information is being hosted on the bank's website www.yes.bank.in in compliance with regulatory requirements.

Industry Context and Significance

The ESG rating of 80.5 places YES Bank in the 'A' grade category (80-90 range), indicating strong ESG performance with low risk profile. This rating reflects the bank's comprehensive approach to sustainability and responsible banking practices, which are increasingly important for stakeholders including investors, regulators, and customers.

The independent nature of the assessment adds credibility to the rating, as it was conducted without any commercial engagement between the bank and the rating provider, ensuring objectivity in the evaluation process.