RBI Imposes Restrictions on Kotak Mahindra Bank Due to IT Failures

The Reserve Bank of India has barred Kotak Mahindra Bank from onboarding new online customers and issuing new credit cards, citing severe IT and risk management deficiencies.

• The RBI's decision follows significant IT and security lapses identified during inspections in 2022 and 2023.
• Existing customers will not be affected by these restrictions and can continue using their services without interruption.
• The bank faces challenges in customer acquisition as most of its new customers are onboarded online.
• An external audit must be completed, with RBI approval, before the restrictions can be reconsidered.
• Frequent outages in Kotak Mahindra Bank's digital channels have raised concerns about its operational resilience.

3 Articles

NDTV NDTV TechCrunch