RBI

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.