Indian Banks have been under the RBI scrutiny. The RBI has come down heavily for the bad loans and customer security issues. Last year could well be termed as the worst year for the Indian banks when loans went on crores, borrowers fled the country after defaulting, high-profile clients whose frauds ran in multi-crores.  This saw the exits of a few high profile bankers. Hence, this sternness and earnestness are needed to bring back the public faith back to the central institution and in its auditing.

In the recent case, Yes Bank founded in 2004 by Rana Kapoor and Ashok Kapur, has fallen short of RBI's regulations. The RBI has issued stock exchange notice as it violated regulations by revealing a few parts of the findings of the central bank audit. The audit is said to have found other lapses and regulatory breaches in the general functioning and the selective disclosure, which is detrimental to the Yes Bank's future.

But the Yes Bank has given a statement which focuses on the point that the audit has found "nil divergences" in the assessment of bad loans. But the RBI has been quick to burst their bubble by mentioning that nil divergence is hardly an achievement to be commended. The reprimanding statement from the RBI has resulted in the falling 8 % before paring the loses to 4.6%. This made Yes Bank worst member of the Bankex index.

In September 2018, Yes Bank's co-founder and CEO Rana Kapoor were denied full term, as he wrongly classified loans which should have been termed as non-performing. He was asked to step down by end of January this year. This stern decision was much needed in lieu of the case when a hurried clean chit given to then ICICI CEO Chanda Kochchar on the allegations of conflict of interest.

The message from RBI is quite clear, the regulator will be forever held to that high standard. Any compromise would damage the credibility that the central bank is trying to win so hard.