Kotak Mahindra Bank Addresses RBI Concerns
Following the Reserve Bank of India's (RBI) strict action against Kotak Mahindra Bank, CEO and Managing Director Ashok Vaswani assured customers that the bank is actively working to address the regulator's concerns. In a statement posted on social media, Vaswani emphasized the bank's continuous communication with the RBI to resolve any outstanding issues.
The RBI's action, taken on Wednesday, barred Kotak Mahindra Bank from onboarding new customers through online and mobile banking channels and prohibited the issuance of new credit cards. This decision stemmed from repeated non-compliance with IT norms and the discovery of "serious deficiencies" in the bank's IT risk management.
Vaswani acknowledged the temporary pause on issuing new credit cards but assured existing customers that their operations remain uninterrupted. He further stated that the bank is committed to ensuring the highest standards of compliance and customer service.
This incident highlights the importance of financial institutions adhering to regulatory guidelines and maintaining robust IT infrastructure to safeguard customer data and ensure operational stability.