RBI Orders Kotak Mahindra Bank to Halt New Customer Sign-ups Online and via Mobile Apps, as well as Stop Issuing New Credit Cards. This Directive Takes Immediate Effect. However, the Bank Will Maintain Services for Existing Customers, Including Those with Credit Cards.
In a statement, the RBI highlighted that its actions against the bank stemmed from significant concerns identified during the Reserve Bank’s IT Examination for the years 2022 and 2023. These concerns persisted due to the bank’s ongoing failure to comprehensively and promptly address them.
The RBI outlined serious shortcomings and breaches observed in various areas, including IT inventory management, patch and change management, user access management, vendor risk management, data security, data leak prevention strategy, business continuity, and disaster recovery preparedness and testing. The RBI emphasized that for two consecutive years, the bank fell short in its IT Risk and Information Security Governance, contrary to regulatory guidelines.
