Kotak Mahindra Bank addressed the recent directive from the RBI which prohibited the bank from acquiring new customers through online and mobile banking platforms as well as issuing new credit cards, emphasizing its commitment to work with regulators to meet technological standards. The bank is actively taking steps to mitigate the consequences of the RBI's actions by reallocating resources and investing in enhancing IT systems, aiming to accelerate the execution of their core banking resilience plan and fortify digital payment security controls.
The RBI's scrutiny of Kotak Mahindra Bank's IT systems over the past two years resulted in restrictions on customer onboarding through digital channels and new credit card issuance. Identified deficiencies in IT inventory management, data security, and other areas led to the regulator's intervention, compelling the bank to address these concerns promptly. Despite the challenges posed by the RBI's observation of non-compliance in IT governance, Kotak Mahindra Bank is striving to adopt technological advancements to reinforce its IT infrastructure and resolve outstanding issues in collaboration with the banking regulator. CEO Ashok Vaswani assured existing customers of uninterrupted services while acknowledging the temporary pause in issuing new credit cards and reiterated the bank's commitment to working with the RBI to swiftly resolve any outstanding issues for continued operational efficiency.