Heads up, folks! The Reserve Bank of India (RBI) has put the brakes on Kotak Mahindra Bank from rolling out any fresh new credit cards.
The Reserve Bank of India (RBI) puts a halt on Kotak Mahindra Bank’s customer onboarding!
In an unprecedented move today, RBI exercised its powers under Section 35A of the Banking Regulation Act, 1949, instructing Kotak Mahindra Bank Limited to immediately cease:
° Onboarding of new customers via online and mobile banking channels.
° Issuing fresh credit cards.
RBI has placed restrictions on Kotak Mahindra Bank’s issuance of new credit cards, but fret not! Existing customers can still enjoy uninterrupted service and keep using their credit cards.
RBI Acts Against Bank: Services for Existing Customers to Remain Unaffected
In a recent statement, the Reserve Bank of India (RBI) announced measures against a bank following concerns raised during IT examinations in 2022 and 2023. The central bank highlighted serious deficiencies in various critical areas such as IT inventory management, patch and change management, user access control, vendor risk management, data security, and more.
The RBI’s assessment over two consecutive years found the bank to be lacking in IT Risk and Information Security Governance, in violation of regulatory guidelines. Despite these challenges, the bank is committed to providing uninterrupted services to its existing customers, including those holding credit cards.
Stay informed as the situation unfolds and the bank takes necessary actions to address these concerns under the guidance of RBI.
Kotak Mahindra Bank failed to meet the corrective action plans provided by the RBI for 2022 and 2023. After evaluations, it was found that the bank’s submissions about meeting the requirements were inadequate, incorrect, or not suitable for long-term compliance.