The Reserve Bank of India (RBI) has imposed restrictions on Kotak Mahindra Bank. The central bank said that the bank will not be allowed to onboard any new customers through its online and mobile banking channels.
Kotak Mahindra Bank has also been barred from issuing fresh credit cards by the RBI. The restrictions have been imposed due to deficiencies in the bank’s IT system. The RBI said that the bank could not onboard new customers, but existing customers can continue to do business with the bank.
The RBI said in a statement, “The bank shall, however, continue to provide services to its existing customers, including its credit card customers.” The bank said that it will continue to provide services to its existing customers. The RBI said that the bank’s existing customers having accounts and other financial assets, need not worry over RBI’s latest order.
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The RBI found that Kotak Mahindra Bank was deficient in its IT Risk and Information Security Governance. According to the RBI, the bank’s IT systems are not up to date, and the bank is unable to provide complete and accurate financial data to its customers. The RBI has also said that Kotak Mahindra Bank has not implemented effective risk management measures to prevent data breaches and financial fraud.
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