Kotak Mahindra Bank | Mumbai: Private sector Kotak Mahindra Bank (Kotak Mahindra Bank) Reserve Bank of India (RBI) shocked. Restrictions on onboarding new customers through online and mobile banking channels. It also ordered to immediately stop the issuance of new credit cards. The RBI has taken these steps on Wednesday in the wake of identifying errors in IT risk management.
The RBI said that the decision was taken as the bank failed to comprehensively and timely address the deficiencies identified in the Reserve Bank’s IT inspection for the years 2022 and 2023, which necessitated action. It said in its statement that it has identified serious deficiencies in IT inventory management, user access management, vendor risk management, data security and data leak prevention strategy. The RBI said that the guidelines were not followed for those two years in terms of IT risk and information security governance.
యూట్యూబ్కు పోటీగా.. వీడియోల కోసం ‘ఎక్స్’ టీవీ యాప్!
It is in this context that RBI has imposed restrictions on adding new customers and issuing credit cards. However, existing credit card holders and other customers can be served as usual. The bank will have to conduct a comprehensive audit with prior approval from the RBI. The RBI will review it and decide on sanctions if the bank is satisfied with the actions taken. In 2020, RBI imposed similar restrictions on HDFC Bank as well. Issuance of credit cards has been stopped. Sanctions lifted in August 2021. On the other hand, analysts say that the latest decision taken by RBI is likely to affect Kotak Bank’s credit card business.
