“RBI Halts New Credit Cards & Customer Onboarding at Kotak Mahindra Bank: What It Means for You!”

The Reserve Bank of India (RBI) has directed Kotak Mahindra Bank to stop issuing new credit cards and onboarding new customers through its online and mobile banking channels due to serious issues found in the bank’s operations. This action was taken because the RBI identified significant concerns during IT examinations in 2022 and 2023, which were not properly addressed by the bank.

The concerns were related to IT management, security, and risk controls. The bank did not adequately manage IT inventory, software updates, user access, and data security. The RBI found that the bank’s IT risk and information security practices were lacking for two years in a row, which violated regulatory guidelines.

As a result, the RBI has imposed restrictions on Kotak Mahindra Bank to protect customers and prevent any major disruptions to banking services. Existing customers of the bank, including credit card holders, will not be affected by these restrictions. The bank must now conduct a thorough external audit approved by the RBI to address these issues and ensure compliance.

These restrictions will be lifted once the bank satisfactorily addresses all deficiencies highlighted in the external audit and the RBI inspections. Additionally, other regulatory actions may be taken against the bank if necessary.

  1. #Mumbai
  2. #Delhi
  3. #Bangalore
  4. #Kolkata
  5. #Chennai
  6. #Hyderabad
  7. #Pune
  8. #Ahmedabad
  9. #Jaipur
  10. #Surat
  11. #Lucknow
  12. #Kanpur
  13. #Nagpur
  14. #Patna
  15. #Indore
  16. #Thane
  17. #Bhopal
  18. #Visakhapatnam
  19. #Vadodara
  20. #Firozabad

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