RBI bans Kotak Mahindra Bank from adding new customers through online banking, issuing credit cards
The central bank said it had found deficiencies in the private bank’s information technology system.
The Reserve Bank of India on Wednesday restricted Kotak Mahindra Bank with immediate effect from adding new customers through its online and mobile banking channels and issuing fresh credit cards after finding deficiencies in its information technology system.
Kotak Mahindra Bank can continue to provide services to its existing customers, the central bank said.
The Reserve Bank’s statement said that the directions were necessitated based on significant concerns arising out of its information technology examination of the Kotak Mahindra Bank for the years 2022 and 2023 and the “continued failure on part of the bank to address these concerns in a comprehensive and timely manner”.
“Serious deficiencies and non-compliances were observed in the areas of IT inventory management, patch and change management, user access management, vendor risk management, data security and data leak prevention strategy, business continuity and disaster recovery rigour and drill, etc,” the Reserve Bank said in a statement.
The central bank said that Kotak Mahindra Bank “was assessed to be deficient in its IT Risk and Information Security Governance, contrary to requirements under regulatory guidelines” for two consecutive years. This encompasses the way a company manages its information security requirements.
“In the absence of a robust IT infrastructure and IT Risk Management framework, the bank’s Core Banking System (CBS)...
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