Achi news desk-
GUWAHATI: The Reserve Bank of India (RBI) has directed Kotak Mahindra Bank to stop onboarding new customers through its online and mobile banking platforms as well as issuing new credit cards, effective April 24.
However, the bank may continue to provide services to its existing customers, including credit card holders, as detailed in the Rambam decree.
Also Read: Nitin Gadkari faints during Maharashtra election rally
The RBI said, “These actions are warranted based on significant concerns arising from the Bank’s Central Bank IT review for 2022 and 2023 and the ongoing failure on the part of the Bank to address these concerns in a comprehensive and timely manner.”
The RBI has directed Kotak Mahindra Bank to stop issuing the new credit cards and onboarding new customers through mobile banking.
Click here to join our WhatsApp channel
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 leakage prevention strategy, business continuity and rigor and disaster recovery exercise, etc. in the bank.
The bank has been assessed as deficient in its IT risk management and information security for two consecutive years, the central bank said."Lacking 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 over the past two years, the most recent being a service disruption in April. 15, 2024, resulting in serious inconvenience to customers," said the RBI.
