Team Blitz India
NEW DELHI: The Reserve Bank of India (RBI) ordered Kotak Mahindra Bank to immediately cease onboarding new customers via its online and mobile banking channels and to stop issuing fresh credit cards, citing serious deficiencies in the bank’s IT systems and risk management practices.
The RBIsaid it was imposing the restrictions on Kotak Mahindra Bank because of significant concerns stemming from its IT examinations of the bank for the years 2022 and 2023. The central bank found serious deficiencies and noncompliance in areas such as IT inventory management, patch and change management, user access management, vendor risk management, data security, and business continuity planning, it said.
Kotak operates Kotak811, a digital offering that has emerged as its strongest customer acquisition tool in recent years. Kotak811, which allows onboarding of customers digitally and within “three minutes” without paperwork, serves nearly 20 million customers.
