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I have a warning notification in my software . It asks the user whether they want to proceed or not by providing yes and no buttons in the notification itself. I am thinking of using red font color for YES button and blue font color for NO button.

As shown in the picture below

enter image description here

The reason for using red color for a positive action is that I want the users to feel the negative warmth of this action as once you post this transaction it cannot be reversed.

But my colleague thinks that we should use the colors vice versa as shown below

enter image description here

So what do you guys think about it from the UX perspective?

"Also if you guys agree with my statement , then kindly provide me examples if such sort of negative visual is used for a positive action elsewhere"

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As I always say when I see questions like this: never rely on colour alone - a colourblind user (at least 10% of the all males) may not be able to tell the difference between the two examples you gave.

If you want to signify that one option is more desirable than the other then you could make the most desirable option into an obvious button something like the post/discard buttons on Stack Exchange:

Stack Exchange 'Post' button and 'Discard' text link

This intuitively guides your user into taking the most desirable action but leaves them free to choose the alternative if they wish.

If the most desirable action your users could take in your case is to click 'Yes', then your notification bar could look something like this:

mockup

download bmml source – Wireframes created with Balsamiq Mockups

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I would suggest changing the names of your buttons entirely to make it very clear what pressing each of them will do. For example, instead of "Yes", have the button read: "Post my Refund". Instead of "No", use "Cancel". Additionally, I agree with @Andrew Martin's suggestion to make the "Post my Refund" button stand out visually.

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