RBI

• 25 Apr 2024

On April 2024, Reserve Bank of India (RBI) instructed Kotak Mahindra Bank to cease new customer onboarding and credit card issuance due to IT deficiencies, impacting digital services.

• RBI directs Kotak Mahindra Bank to cease new customer onboarding and issuing fresh credit cards under Section 35A of the Banking Regulation Act.
• Concerns arose from RBI's IT examination, highlighting deficiencies in IT inventory management, data security, and disaster recovery.
• Frequent outages in Core Banking System and digital channels led to customer inconvenience, necessitating action from the RBI.
• Despite high-level engagement and continuous concerns, Kotak Mahindra Bank failed to address deficiencies adequately.
• Existing customers will continue to receive services, including credit card facilities, while the bank works to enhance its IT infrastructure.