Kotak Mahindra Bank barred by RBI: No new credit cards, customers through online banking, mobile banking


The Reserve Bank of India (RBI) ordered Kotak Mahindra Bank to stop onboarding new customers through its online and mobile banking channels and from issuing fresh credit cards as well. The bank can, however, provide services to its existing customers, including its credit card customers, the RBI said in its order. 

What RBI said on Kotak Mahindra Bank?

Kotak Mahindra Bank faces RBI action: The bank can, however, provide services to its existing customers, including its credit card customers, the RBI said in its order. (Bloomberg)

The RBI said, “These actions are necessitated based on significant concerns arising out of Reserve Bank’s IT Examination of the bank for the years 2022 and 2023 and the continued failure on part of the bank to address these concerns in a comprehensive and timely manner.”

What this means for Kotak Mahindra Bank customers?

HT launches Crick-it, a one stop destination to catch Cricket, anytime, anywhere. Explore now!

The RBI directed Kotak Mahindra Bank to stop issuance of fresh credit cards and the onboarding of new customers via mobile banking.

Why has RBI barred Kotak Mahindra Bank?

The RBI said that serious deficiencies and non-compliances were observed in the areas of IT inventory management, patch and change management, user access management, vendor risk management, data security and data leak prevention strategy, business continuity and disaster recovery rigour and drill, etc, in the bank. 

The bank was assessed to be deficient in its IT Risk and Information Security Governance for two consecutive years, the central bank said.

“In the absence of a robust IT infrastructure and IT Risk Management framework, the bank’s Core Banking System (CBS) and its online and digital banking channels have suffered frequent and significant outages in the last two years, the recent one being a service disruption on April 15, 2024, resulting in serious customer inconveniences,” the RBI said.

Discover the pivotal moments that shaped India’s electoral journey on the Eras section of our exclusive Elections product. Access all content absolutely free on the HT App. Download now!
Stay informed on Business News, TCS Q4 Results Live, Jio Financial Services Q4 Results Live along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs



Source link

  • Related Posts

    O3 Capital’s Launch of American Express Cards in Nigeria Meets with Huge Demand

    O3 Capital (“O3”), a leading Nigerian fintech and the country’s first non-bank credit card issuer, is delighted to update the market on the first month of operations – following the…

    5 best cards for Gold Mines arena of Goblin Queen’s Journey in Clash Royale

    Gold Mines arena is the first arena of the recently launched Goblin Queen’s Journey game mode in Clash Royale. Once players start playing Goblin Queen’s Journey mode, they will remain…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    O3 Capital’s Launch of American Express Cards in Nigeria Meets with Huge Demand

    O3 Capital’s Launch of American Express Cards in Nigeria Meets with Huge Demand

    5 best cards for Gold Mines arena of Goblin Queen’s Journey in Clash Royale

    5 best cards for Gold Mines arena of Goblin Queen’s Journey in Clash Royale

    Visa seals deal with Lloyds to take millions of cards from rival

    Visa seals deal with Lloyds to take millions of cards from rival

    100 Attend Senior Center’s Birthday Party, Also Learn About Free Ride Program & Make Cards

    100 Attend Senior Center’s Birthday Party, Also Learn About Free Ride Program & Make Cards

    Police: Suspects used a tool and special trick to steal credit cards undetected

    Police: Suspects used a tool and special trick to steal credit cards undetected

    Suspects used a tool and special trick to steal credit cards undetected

    Suspects used a tool and special trick to steal credit cards undetected